Magnit

Capital/Financing Update • Dec 18, 2017

MAGNIT PJSC (MGNT)

18-Dec-2017 / 08:20 CET/CEST

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Press Release Krasnodar December 18, 2017

PJSC"Magnit" Announces the Downgrade of its S&PRating to "BB" Level, Outlook "Stable"

Krasnodar, December 18, 2017: Magnit PJSC, one of Russia's leading retailers (MOEX and LSE: MGNT) announces the downgrade of its S&P Rating to "BB"level, outlook "Stable"s.

Please be informed that on December 15, 2017 Standard & Poor's Rating Services downgraded thelong-term credit rating of the Russian food retailer PJSC "Magnit"to "BB"from"BB+", onweaker profitability; the outlook ofrating change- "Stable".

The stable outlook reflects expectations that over the next 12 months, despite a highly challenging trading environment, Magnit willsustain its market leading position in the Russian food retail sector. Standard & Poor's Rating Services anticipates that Magnit will stabilize its margin broadly at the current leveland implement a financial policy that balances investment and dividends, consequently maintaining adjusted debt to EBIDTAat around 3x and adjusted funds fromoperations to debtatabout 25%.

Forfurtherinformation, please contact:

Timothy Post	Head ofInvestor Relations
	Email: post@magnit.ru
	Office:+7-861-277-4554 x 17600
Dina Svishcheva	DeputyDirector, Investor Relations
	Email:Chistyak@magnit.ru
	Office:+7-861-277-4554 x 15101
MediaInquiries	Media Relations Department
	press@magnit.ru

Company description:

Public Joint Stock Company "Magnit"is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As ofSeptember 30, 2017, Magnit operated 36 distribution centersand 15,697 stores (11,743 convenience, 432 hypermarkets and 3,522 drogeriestores) in 2,664 citiesand towns throughout 7 federalregions ofthe Russian Federation.

In accordance with thereviewed IFRS consolidated financialstatements for 1H 2017, Magnit had revenues of RUB 555 billion and an EBITDAof RUB 49 billion. Magnit's localshares are traded on the Moscow Exchange (MOEX:MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT)and it hasacredit rating fromStandard &Poor's ofBB. Measured bymarketcapitalization, Magnit is one of thelargest retailers inEurope.

ISIN: US55953Q2021 Category Code: MSCU TIDM: MGNT LEICode: 2534009KKPTVL99W2Y12 OAM Categories:3.1.Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 5034

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