11 February 2019 y.

Fitch Upgrades Transmashholding to 'BB'

International agency Fitch Ratings has upgraded Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of JSC Transmashholding from 'BB-' to 'BB' with a Stable Outlook on the IDRs.

The decision reflects Transmashholding’s positive status of financial outlook. Analysts point out growing demand for the company’s products, ongoing improvement of leverage and debt service metrics, as well as adequate liquidity.

Among the factors that led to the upgrade, Fitch lists the company’s strong market position in production of rolling stock in Russia and CIS, active development of export business, and a diversified product portfolio.

Long-term cooperation between Transmashholding and its main customers – Russian Railways, Federal Passenger Company, Mosco Metro, and others – also played a role in the new rating.

Fitch experts point out that TMH has proven access to debt capital markets as shown by its second issue of a RUB5 billion bond in the beginning of November 2018.

“This increase of the credit rating reflects the positive outlook of Transmashholding’s business and will help widening the circle of potential investors and creditors, - explained the First Deputy CEO for Economy and Finance Oleg Domsky. – Fitch’s decision will help us attract borrowed assets on superior conditions, as well as further improve corporate financial governance. We also hope this assessment of the holding’s work coming from a respected source will help improve international reputation of the company as a reliable, financially resilient provider of modern technology and transportation solutions”.

The first Fitch rating of 'BB-' was assigned to Tranmashholding on December 22, 2016. On January 25, 2018 it was reaffirmed with a positive forecast.