Rating Action: Moody's withdraws all ratings of NizhnekamskneftekhimPJSC following acquisition by SiburGlobal Credit Research - 07 Feb 2022London, 07 February 2022 -- Moody's Investors Service ("Moody's") haswithdrawn all ratings of Nizhnekamskneftekhim PJSC (NKNK), due tocorporate reorganisation following the acquisition by Sibur Holding, PJSC(Sibur, Baa3 stable), a vertically integrated petrochemical companyoperating in Russia. The outlook at the time of the withdrawal wasstable. The company has no rated debt.The action follows completion of acquisition by Sibur of certain assetsof JSC TAIF, including NKNK. As a result of this transaction Sibur, viaJSC TAIF, now holds 83% NKNK's ordinary shares (or 78,1% of the company'stotal equity).A full list of affected ratings can be found at the end of this pressrelease.RATINGS RATIONALEThe acquisition, completed in October 2021, has resulted in corporatereorganization with NKNK becoming an integral part of Sibur groupfinancially and operationally. Key investment and financing decisions,including debt issuance, will be taken at the holding level. Moody'supgraded NKNK to Ba3 stable and affirmed Sibur at Baa3 stable on 29October 2021 to reflect consolidation of NKNK into Sibur from the fourthquarter of 2021. Please see press-release [1].Please refer to the Moody's Investors Service's Policy for Withdrawal ofCredit Ratings, available on its website, www.moodys.com.LIST OF AFFECTED RATINGSWithdrawals:..Issuer: Nizhnekamskneftekhim PJSC....Probability of Default Rating, Withdrawn, previously rated Ba3-PD....LT Corporate Family Rating, Withdrawn, previously rated Ba3Outlook Actions:..Issuer: Nizhnekamskneftekhim PJSC....Outlook, Changed To Ratings Withdrawn From StableNizhnekamskneftekhim PJSC is a major Russian petrochemical companylocated in the Republic of Tatarstan. NKNK's eight core production unitsproduce rubber, plastics, monomers and other petrochemicals, and arelocated on two adjacent production sites that have centralisedtransportation, energy and telecommunication infrastructure. In the 12months that ended on 30 June 2021, the company reported sales of RUB205billion and adjusted EBITDA of RUB49 billion. Of NKNK's ordinary shares,83% (or 73% of the company's total equity) are held by Sibur via JSCTAIF, and the rest of the equity is in free float. The Tatarstangovernment retains the golden share of NKNK, which gives the governmentveto power over certain major corporate decisions.Sibur Holding, PJSC (Sibur) is a vertically integrated petrochemicalcompany operating in Russia. Leonid Mikhelson is the major shareholderwith of shares (30.6%), followed by Gennady Timchenko with 14.5%. ChinaPetroleum and Chemical Corporation (A1 stable) and China's (Government ofChina, A1 stable) Silk Road Fund hold 8.5% each in Sibur. SOGAZ JSC holds10.6%, JSC TAIF shareholders 15%, and the company's current and formermanagement hold the remaining 12.3%. In the 12 months ended 30 September2021, Sibur generated revenue and reported EBITDA of RUB752 billion andRUB334 billion, respectively.REGULATORY DISCLOSURESFor any affected securities or rated entities receiving direct creditsupport from the primary entity(ies) of this credit rating action, andwhose ratings may change as a result of this credit rating action, theassociated regulatory disclosures will be those of the guarantor entity.Exceptions to this approach exist for the following disclosures, ifapplicable to jurisdiction: Ancillary Services, Disclosure to ratedentity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designatedagent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody's Policy forDesignating and Assigning Unsolicited Credit Ratings available on itswebsite www.moodys.com.Regulatory disclosures contained in this press release apply to thecredit rating and, if applicable, the related rating outlook or ratingreview.Moody's general principles for assessing environmental, social andgovernance (ESG) risks in our credit analysis can be found athttp://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement wasissued by one of Moody's affiliates outside the EU and is endorsed byMoody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322,Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No1060/2009 on Credit Rating Agencies. Further information on the EUendorsement status and on the Moody's office that issued the creditrating is available on www.moodys.com.REFERENCES/CITATIONS[1] Moody's affirms the Baa3 ratings of Sibur and upgrades NKNK to Ba3following completion of merger transaction with JSC TAIF; outlook stable(Link: https://www.moodys.com/research/--PR_457115)Please see www.moodys.com for any updates on changes to the lead ratinganalyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.comfor additional regulatory disclosures for each credit rating.Julia PribytkovaVice President - Senior AnalystCorporate Finance GroupMoody's Investors Service Limited, Russian Branch7th floor, Four Winds Plaza21 1st Tverskaya-Yamskaya St.Moscow 125047RussiaJOURNALISTS: 44 20 7772 5456Client Service: 44 20 7772 5454Victoria MaisuradzeAssociate Managing DirectorCorporate Finance GroupJOURNALISTS: 44 20 7772 5456Client Service: 44 20 7772 5454Releasing Office:Moody's Investors Service Ltd.One Canada SquareCanary WharfLondon E14 5FAUnited KingdomJOURNALISTS: 44 20 7772 5456Client Service: 44 20 7772 5454© 2022 Moody's Corporation, Moody's Investors Service, Inc.,Moody's Analytics, Inc. and/or their licensors and affiliates(collectively, "MOODY'S"). 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