On 20 April 2020 20 Fitch Ratings affirmed STLC’s long-term issuer default ratings in foreign and national currencies and revised outlook to ‘stable’ from ‘positive’ due to significant impact of the global COVID-19 pandemic on the Russian economy and on the propensity of the state to support STLC. Senior unsecured debt rating and short-term IDR were also affirmed at BB+ and B respectively.
Despite changing the outlook to ‘stable’, Fitch Ratings highlighted it its press release that it had not revise the outlook to ‘negative’ as there was no weakening trend in support by the state for the Company. The rating agency also stressed that the pressure on the intrinsic creditworthiness of STLC driven by COVID-19 outbreak will be mitigated by an adequate funding profile with a reasonable liquidity buffer and modest repayment needs for 2020-2021.
“The mere fact that Fitch Ratings affirmed the Company’s credit ratings at BB+ and changed the outlook to ‘stable’ amid dramatic changes in global and national economies and particularly in the transportation sector due to coronavirus pandemic, proves the high level of STLC’s creditworthiness and systemic importance and role the Company plays in the implementation of state policy aimed at the development of the Russian transportation sector”, commented STLC’s First Deputy CEO Anton Borisevich.
Full information on STLC’s credit ratings can be found at the Company’s corporate web site.