The 'A+' rating indicates that the limited liability company Trewetch Corporate Services – Management maintains a high level of reliability. The risk of a failure to meet obligations in full and in time is insignificant.

The rating of TCS-Management LLC reflects its capacity to fully and timely meet its obligations arising from being the sole executive body for mortgage agents, i.e. special-purpose vehicles set up exclusively to acquire receivables on loans secured by mortgage, to later issue and service mortgage-backed debt securities (MBS).

The reliability rating of TCS-Management LLC is essentially supported by its sound position in the Russian mortgage asset securitization market combined with a fast business expansion, highly efficient management of affiliated mortgage agents, and steady financial profile.

TCS-Management LLC continues expanding its business. Of special value is the broader cooperation with Russia's leading originator OJSC The Agency for Housing Mortgage Lending / AHML. The number of mortgage agents of this originator managed by TCS-Management LLC increased from one in 2013 to three at the end of the first quarter of 2015. At the end of 2016, the amount of bonds issued by these mortgage agents (at the face value) reached almost RUB 39.6 billion or approximately 43% of the total mortgage debt securitized by TCS-Management LLC.

Overall, in 2015 alone, the mortgage agents affiliated with TCS Group placed mortgage bonds for a total amount of RUB 52.8 billion, i.e. more than 50% above the amount placed in bonds for the previous four years. Furthermore, the mortgage agents managed by TCS-Management LLC alone accounted for the whole amount of internal off-balance mortgage debt securitization in the first quarter of 2015.

The mortgage agents authorizing TCS-Management LLC to be their executive body are operating in full compliance with federal laws 152-FZ "On mortgage-backed securities", 39-FZ "On securities market" and other regulatory instruments issued by state administrative and supervisory bodies. The Company's accounting records maintenance services provided to mortgage agents meet the applicable requirements, as proven by favorable audit opinions and absence of tax sanctions. Coupon and nominal principal payments on the mortgage bonds are effected on time and in full (meeting the respective terms of bond offering). Of special value is the successful completion of TCS-Management's first project CJSC Mortgage Agent of MBRD. The bonds issued by this mortgage agent were successfully retired ahead of schedule before the end of 2014 (the loan repayment deadline being 2038). The successful activity of mortgage agents managed by the Company contributes essentially to the reliability rating of TCS-Management LLC.

TCS-Management's financial profile may be regarded as fairly strong. In 2015, the Company's assets grew more than twice, equity capital went up 4.3 times, sales profit increased 2.4 times, net profit 2.7 times, return on assets (ROA) ratio improved from 29.6% to 35.4%, return on equity (ROE) ratio reached 163.3%. The Company's debt liabilities are mainly composed of accounts payable (mostly current payments to the parent company for using the trade mark and current obligations to mortgage agents pursuant to advances received). The Company's total net debt is below zero. Another positive rating driver is the Company's strong liquidity position; in 2015, its current liquidity ratio improved from 1.12 to 1.33, absolute liquidity ratio from 0.69 to 1.09. As a whole, the Company's current financial standing enables it to focus entirely on its core business of being the sole executive body for mortgage agents. This strong foundation is of great importance, given the Company's ongoing business expansion.

To a certain extent, the reliability rating of TCS-Management LLC is constrained by the continued deterioration of the Russian economy increasing the risks of transactions in the mortgage securities market.

TCS-Management LLC has been operating in the mortgage securitization market since 2009. Today, the Company is the sole executive body for 22 mortgage agents, including closed joint-stock companies Mortgage Agent of AHML 2011-1, Mortgage Agent of AHML 2014-2, Mortgage Agent of AHML 2014-3, Mortgage Agent SOYUZ 1, FEMLC-1 Mortgage Agent, Mortgage agent TFB1, Mortgage agent Vozrozhdenie 3, Mortgage Agent HFB-1, East-Siberian Mortgage Agent, Mortgage agent AkBars, Multi-originator Mortgage Agent 1. Investment Company TREWETCH Investments Ltd registered in Cyprus owns 99% of the authorized capital of TCS-Management LLC. The Chief Executive Officer of TCS-Management LLC is Tatyana Kachalina, an internationally rated corporate law, capital market, project financing, securitization and M&A expert.

AK&M Rating Agency assigned a credit rating to TCS-Management LLC for the first time on April 15, 2013. The last rating action in relation to the Company was taken on April 16, 2015. All rating action announcements are available on the akmrating.ru website.

For estimation purposes, we completely rely on the reliability of information provided by the Company. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors.

This press release is based on the Statement of assignment of a reliability rating to TCS-Management LLC and the applicable Mortgage Servicer Rating Methodology.

The rating, along with any information and conclusions provided in this press release, only conveys our creditworthiness opinion and shall not be construed as a recommendation to purchase or sell securities, or to lend funds.

AK&M Rating Agency shall not be held liable for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

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