Fitch puts DeloPorts on watch

Fitch Ratings said it placed DeloPorts LLC’s long-term issuer default rating of BB- and unsecured bond rating of BB- on rating watch negative.

The rating action follows the Nov. 27 announcement that Delo Group won the auction for 50% + 2 shares of TransContainer for RUB 60.3 billion, which is a subsidiary of Russian Railways. The rating reflects the uncertainty about Delo Group’s new capital structure, changing business risk profile and future funding requirements, Fitch said.

“We understand that the purchase will be funded by a bank loan at the MC Delo level (holding company of DeloPorts) and equity stake sale. In addition, there will be an upstream guarantee from DeloPorts LLC,” said Fitch in a press release.

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