S&P affirms “the Deloports” at the level “B+”, disabling them from the revision
The international rating Agency S&P Global Ratings has affirmed the long-term credit ratings in foreign and national currency of OOO “Deloports” at the level “B+”.
The ratings were removed from CreditWatch where they were placed with “negative” Outlook on 21 November 2019.
“Group “Case”, which owns 100% of shares of “Deloports”, in April completed the acquisition of PJSC “TransContainer” at the expense of borrowed funds, which increased the consolidated leverage of the group, but has strengthened its business profile,” said the Agency.
In this regard, experts S&P continues to assess the level of their own creditworthiness of the group “Business” on the level “b+” and is tied to the rating the ratings “Deloports”, which is a key function of the group.
“After the group’s acquisition of the “Business” 99,6% “the TransContainer (MCX:TRCN)” share “the Deloports” in the group’s EBITDA will be reduced to about 35% from 90%. However, “the Deloports” is a key asset for the strategy and operations group is closely linked to its reputation and brand, but also enjoys the presence of long-term liabilities from shareholders,” noted S&P.
“Stable” forecast on ratings “the Deloports” reflects the company’s status in the group and our expectations that its creditworthiness will remain stable when the ratio of funds from operations (FFO) to debt above 12%,” – said in a press release.
The S&P forecast the next 3 years the company will maintain a weighted average ratio of funds from operations (FFO) to debt above 20%.
S&P predicts that the impact of COVID-19 will have a moderate effect on the operations of “Deloports” in 2020, recovery is expected in 2021.
S&P said the impact of the global recession and lower overall turnover in the transport sector. Analysts suggest a moderate impact of these factors on the flow of goods in ports and railway, as their infrastructure continues to function, despite the restrictive measures. It is expected that container volumes in 2020 will remain the same as last year, while transshipment of grain could increase by 25%.
“In the conditions prevailing on the world market suffered from the consequences COVID-19, maintaining the rating and stable Outlook indicates the correct strategic course of development “Deloports” in the group. We maintain a stable financial position, the company continued to implement investment projects to increase production capacity of the group’s assets and enhancing operating efficiency,” commented the forecast of the General Director of UK “Business” and “Deloports” Igor Yakovenko, whose words are in the press release of the company.
“It is important that the assets of the group “Deloports” as a strategic part of the transport and logistics industry are continuous activities for infrastructure security. We preserve jobs and working to improve the quality of services to our clients in a pandemic,” said Yakovenko.
“The deloports” is a holding company that owns the stevedoring assets of the group “Business” in the sea port of Novorossiysk. The key assets of the group: container terminal “NUTEP”, KSK grain terminal and a service company “Business”. In 2018, the group “Business” bought a 30.75 per cent shares in Global Ports – Russia’s largest operator of container terminals.