At the meeting of the Rating Committee on August 31, 2023, the National Rating Agency "Rurik" affirmed the long-term credit rating of the bond issue of series A of VEON PLUS LLC at the level of uaA- investment grade with a "developing" outlook.

The credit rating of the debt instrument is determined on the National Rating Scale, as indicated by the letters "ua" in the credit rating designation. The National Rating Scale allows measuring the distribution of credit risk in the Ukrainian economy without taking into account the sovereign risk of the country and is intended for use in the domestic financial market of Ukraine.

According to the National Rating Scale approved by the Cabinet of Ministers of Ukraine No. 665 dated April 26, 2007, a borrower or a separate debt instrument with a rating of uaA is characterized by a high creditworthiness compared to other Ukrainian borrowers or debt instruments. The level of creditworthiness is sensitive to unfavorable commercial, financial, and economic conditions.

The "-" sign indicates an intermediate rating level relative to the main levels.

The "developing" outlook indicates an increased probability of a change in the credit rating, depending on the possibility of realizing both positive and negative trends and current risks.

The credit rating may be changed, suspended, or withdrawn in case of the appearance of new significant information, insufficient information for updating the rating, or for other reasons that the agency deems sufficient to take such actions.

The rating assessment is not an absolute measure of credit risk but rather the opinion of the rating agency regarding the reliability (creditworthiness) of the rated object relative to other objects.

The determination of the credit rating level is carried out based on a specially developed proprietary methodology, taking into account the requirements of the current Ukrainian legislation and international standards. In no case does the assigned credit rating constitute a recommendation for any form of financing of the rated object or the purchase or sale of its securities. NRA "Rurik" does not act as a guarantor and is not responsible for any debt obligations of the rated object.

NRA "Rurik" does not personally conduct audits or other checks of information and may, if necessary, rely on unverified financial data provided by the client. The level of credit rating depends on the quality, consistency, and completeness of the information available to the Agency.

To determine the credit ratings, NRA "Rurik" used the internal information and financial statements provided by VEON PLUS LLC from January 1, 2010, to July 1, 2023, as well as public information and its own databases.

During the determination of the rating assessment, the most significant factors affecting the credit rating level of the debt instrument were summarized.

Positive factors:

- The issuer owns the Radisson Blu Hotel, Kyiv Podil hotel complex, with a management agreement concluded with Rezidor Hotel Group, one of the world's largest hotel operators.

- Favorable location of Radisson Blu Hotel, Kyiv Podil. The hotel complex is located in the historical part of the city at the intersection of main tourist routes, in close proximity to many business centers and government institutions, which adds to the issuer's potential to expand its customer base.

- The availability of the necessary permitting documentation and land allocation decisions for the multifunctional hotel complex activity, reducing legal risks associated with the implementation of the development project.

- Financial transparency and information openness of the Company, reflected in the detailed and comprehensive disclosure of information necessary to determine the credit rating. This has reduced the degree of uncertainty regarding the financial and economic activities of the Company and allowed for a better assessment of its creditworthiness.

Negative factors:

- Considering the high volume of bond issuance, the repayment will have a significant impact on the financial position of the Company. On January 6, 2023, bondholders of the Issuer adopted a decision to approve amendments to the prospectus of the issue regarding the extension of the circulation period and redemption of the bonds issued by the Company.

- Low profitability and efficiency indicators of the Company's activity, typical for a subject operating in the hotel business sphere and being a specific development project with a low level of operating profitability compared to other commercial real estate. The accumulation of uncovered losses from past periods puts pressure on the Company's equity indicators.

- The enterprise is highly sensitive to the impact of general political, regional, and macroeconomic sources of risk inherent in Ukraine. The escalation of military aggression by the russian rederation against Ukraine since February 24, 2022, negatively affects financial markets and the economy as a whole, which may worsen the performance indicators of the Company.

Personal page of the Company

04053 Kyiv, Sichovykh Striltsiv st., 52-A