Fitch Ratings Upgrades STLC to 'BB' with a “Stable” Outlook

16.05.2017

Today Fitch Ratings upgraded STLC’s long-term issuer default ratings (IDRs) in foreign and local currencies to ‘BB’ with “stable” outlook, one notch up from previously assigned ‘BB-‘. STLC's rouble-denominated senior unsecured debt ratings as well as US dollar-denominated notes issued by STLC’s Ireland-based subsidiary GTLK Europe DAC (which benefits from an unconditional and irrevocable guarantee from STLC) were uplifted to ‘BB’ in line with foreign- and local-currency long-term IDRs.

The rating upgrade reflects Fitch’s view on increased sovereign’s propensity to support STLC due to the Company’s increasing role in implementation of state programmes, a prolonged track record of equity injections from the Russian Government and deeper integration with the Ministry of Transport of the Russian Federation, among others.