The 'A' rating indicates that OOO Era New-Tone qualifies as a highly creditworthy borrower. The risk of a failure to meet obligations in time is low, the full or partial debt restructuring risk is minimal. The rating assignment was based on the Credit Rating Methodology for Corporates (Issuers) and Financial Assets rev. January 23, 2014.

OOO Era New-Tone, an advertising agency, is a leader in the market of transport and outdoor advertising as well as indoor advertising in Moscow and other regions of Russia. The Company's share is estimated at 3.45% for the related advertising market of Russia, 9.33% for Moscow.

The positive rating drivers for OOO Era New-Tone include the Company's profitable operations; the low loan debt, the interest coverage ratios, the acceptable ratio of accounts receivable and payable, the good turnover ratio for accounts receivable and payable, the availability of sufficient of financial resources to service the current loan debt in the forthcoming 12-month period.

OOO Era New-Tone is a profitable company. Its net profit for H1 2015 exceeded RUB 79 million increasing almost 76 times against the same period in 2014.

The changes in return ratios indicate that the operational efficiency of OOO Era New-Tone is growing. The company's return on sales (ROS) in terms of the operating profit margin for the first half of 2015 increased from 4.6% to 14.8%, return on costs (ROC in terms of EBT margin) from 1.3% to 13.3%, net profit margin from 0.4% to 8.73%, return on invested capital (ROIC, net profit margin) from 13.8% to 110.2% return on equity (ROE, EBT margin) from 46.4% to 170.2%.

The high operating profitability enables the rated Company to keep the interest coverage ratio high and to improve it. In the first half of 2015, the interest coverage ratio of OOO Era New-Tone increased almost 13 times to 57.6 as of the start of H2 2015 reflecting the Company's ability to meet its current loan interest payment obligations without much strain.

We appreciate the Company's fairly low loan debt. At the start of H2 2015, it was completely covered by the Company's monetary resources, with the result that its net debt and debt ratio were below zero. This, combined with the high net profit for the 6-month period in 2015, enables us to regard the financial resources of OOO Era New-Tone as sufficient for servicing its current loan debt over the forthcoming 12-month period.

Liabilities of OOO Era New-Tone mainly arise from its accounts payable, while debts receivable form the backbone of its assets. Therefore, the comparative dynamics of accounts receivable and payable is a key indication of the Company's creditworthiness. We regard the results of analyzing these dynamics as a positive credit rating argument for OOO Era New-Tone.

The ratio of accounts receivable and payable at OOO Era New-Tone has been exceeding 0.9 for five years. At the start of H2 2015 it was 1.21. The accounts receivable and payable turnover ratio has been exceeding 1 for nearly six years. In the first half of 2015, this ratio increased from 1.107 to 1.109. This balance between the Company's accounts receivable and payable indicates a smart financial management policy at Era New-Tone.

At the same time, we regard the growing liabilities and some uncertainty as to how the market of advertising services would develop in the foreseeable future as risk factors for OOO Era New-Tone.

Liabilities of OOO Era New-Tone for H1 2015 almost reached RUB 518 million soaring 1.85 times against the start of the year. While accounts payable form most of the Company's liabilities, the overall increase in liabilities still bears certain risks.

The continuing aggravation of the economic crisis in Russia is certain to cause a reduction in demand in the advertising market. Demand for advertising services in the forthcoming 12-month period is expected to have a certain element of volatility, which bears some risks for the Company's creditworthiness.

As of July 1, 2015, the Company's assets totaled RUB 619.5 million, equity capital was RUB 101.6 million.

AK&M Rating Agency has assigned a credit rating to OOO Era New-Tone for the first time

The rating is valid until August 2016. AK&M Rating Agency may revise the rating and/or the outlook during this period if circumstances fundamentally influencing the Company's creditworthiness are revealed.

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 credit rating to OOO Era New-Tone subject to the Credit Rating Methodology for Corporates (Issuers) and Financial Assets.

The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's creditworthiness 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.

AK&M Rating Agency

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www.akmrating.ru

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.