Moody's: Eastcomtrans notes B3

Moody's Investors Service said it assigned Eastcomtrans LLP's proposed notes issuance a provisional B3 rating, with a loss given default assessment of LGD3-46% and a stable outlook.

The company will pledge its railcars as collateral against the notes. Eastcomtrans will use the proceeds from the notes placement to refinance part of its existing debt and finance the expansion of its fleet.

Moody's said the provisional B3 rating assigned to the proposed notes is equivalent to Eastcomtrans' corporate family rating, reflecting Moody's expectation that the notes will hold security over specific assets, which is the case for the company's other secured and unsubordinated financial debt.

Therefore, Moody's assumes that the notes will not be subordinated to other secured debt, which currently represents a predominant portion of the company's total debt, the agency said.

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