Fitch Ratings affirms TransContainer’s rating at BB+/Stable
On 29 September 2017 Fitch Ratings has affirmed PJSC TransContainer’s Long Term Issuer Default Rating at BB+ with Stable Outlook, which is one notch below the sovereign rating of the Russian Federation (BBB-/Positive).
According to Fitch Ratings, the rating reflects the company’s strong domestic market share of 47%, moderate leverage, its ability to adjust capex in accordance with the market conditions as well as diversification in cargoes and customers. The rating also incorporates a single-notch uplift reflecting Russian Railways being the company’s ultimate majority shareholder.
The rating is also supported by improved Russian rail Transportation equipment for shipping cargo via various means of transport. Containers are durable enough for repeated use and can be stacked. Containers are divided into medium-duty (three- and five-tonne), which conform to former Soviet Union standards and are still used for shipments in Russia and the CIS, and ISO (20- and 40-foot) containers, which are used for Russian and international shipments. The universal standard unit TEU (twenty-foot equivalent unit) was introduced to measure transport flow volumes.
container market fundamentals, strong 1H17 results and the company’s ability to maintain healthy credit metrics in the medium term despite significant increase in capex.