PJSC MAGNIT - Affirmation of the Rating by S&P

Press-release

Krasnodar

April 22, 2016

PJSC "Magnit" Announces the Affirmation of its Rating at "BB+" level by S&P

Krasnodar, April 22, 2016: PJSC "Magnit", Russia's largest retailer (the "Company"; MOEX and LSE: MGNT) announces the affirmation of its rating at "BB+" level by Standard & Poor's Rating Services.

Please be informed that on April 22, 2016 Standard & Poor's Rating Services has affirmed the rating of Magnit at "BB+" level with negative outlook, as the company continues to maintain the leading position at the food retail market and high profitability despite the difficult operational environment.

The negative outlook on Magnit reflects the negative outlook on the Russian Federation. S&P might consider revising outlook to stable if they take a similar action on Russia.

For further information, please contact:

Timothy Post	Head of Investor Relations Email: [e-mail] Office: [phone] x 17600 Mobile: [phone] Direct Line: [phone]
Investor Relations Office	[e-mail] Direct Line: [phone] Website: ir.magnit.com/
Media Inquiries	Media Relations Department [e-mail]

Company description:

Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of March 31, 2016, Magnit operated 34 distribution centers and about 12,434 stores (9,715 convenience, 382 hypermarkets, and 2,337 drogerie stores) in 2,385 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS results for 2015, Magnit had revenues of RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.

Annex

This event may affect the value of the following securities of the Issuer:

non-convertible interest-bearing certified exchange-traded bonds of the BO-001P-03 series to the bearer with the obligatory centralized custody, placed under the Program of the exchange-traded bonds with the identification number of 4-60525-P-001P-02E as of 23.10.2015, identification number of the issue 4B02-03-60525-P-001P as of April 4, 2016, International Stock Identification Number (ISIN) RU000A0JWCF4;

non-convertible interest-bearing certified exchange-traded bonds of the BO-001P-02 series to the bearer with the obligatory centralized custody, placed under the Program of the exchange-traded bonds with the identification number of 4-60525-P-001P-02E as of 23.10.2015, identification number of the issue 4B02-02-60525-P-001P as of February 24, 2016, International Stock Identification Number (ISIN) RU000A0JW662;

non-convertible interest-bearing certified exchange-traded bonds of the BO-001P-01 series to the bearer with the obligatory centralized custody, placed under the Program of the exchange-traded bonds with the identification number of 4-60525-P-001P-02E as of 23.10.2015, identification number of the issue 4B02-01-60525-P-001P as of November 5, 2015, International Stock Identification Number (ISIN) RU000A0JVXM8;

non-convertible interest-bearing certified exchange-traded bonds of the BO-11 series to the bearer with the obligatory centralized custody, identification number of the issue 4B02-11-60525-P as of July 30, 2013, International Stock Identification Number (ISIN) RU000A0JVUZ6;

non-convertible interest-bearing certified exchange-traded bonds of the BO-10 series to the bearer with the obligatory centralized custody, identification number of the issue 4B02-10-60525-P as of July 30, 2013, International Stock Identification Number (ISIN) RU000A0JVMV2;

non-convertible interest-bearing certified bonds of the 02 series to the bearer with the obligatory centralized custody, identification number of the issue 4-02-60525-P as of December 27, 2012, International Stock Identification Number (ISIN) RU000A0JVE99;

non-convertible interest-bearing certified bonds of the 03 series to the bearer with the obligatory centralized custody, identification number of the issue 4-03-60525-P as of December 27, 2012, International Stock Identification Number (ISIN) RU000A0JVE81.