Fitch gives ZAO Leader BB-

Fitch Ratings said it has assigned ZAO Leader a long-term issuer default rating of BB- with a stable outlook and a short-term issuer default rating of B.

According to the agency, the ratings reflect:

• Leader's mostly monoline business of pension fund management;

• Significant reliance on one large customer, NPF Gazfund, a Gazprom-(BBB/negative) related pension fund;

• Volatile elements of its revenues;

• Moderate proprietary risk appetite; and

• Various risks inherent in its contemplated strategy of large-scale infrastructure project management and limited retail expansion.

Fitch added that the ratings also consider Leader's limited investment risks; guaranteed fee income from Gazfund; zero leverage; currently solid capital position and strong ownership by Sogaz (rated BB/stable), one of the country's largest insurance groups, implying the potential for support should the need arise.

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