Fitch revises Eastcomtrans to negative

Fitch Ratings said it revised the outlook on Eastcomtrans LLP's long-term foreign and local currency issuer default ratings and national long-term rating to negative from stable and affirmed the ratings at B and BB(kaz), respectively.

Fitch said the outlook revision reflects its expectation that Eastcomtrans’ dollar-denominated cash flow generating capacity will weaken due to pressure on both lease rates and fleet utilization levels from significant tenge devaluation and revision of contracts with a key client, Tengizchevroil. Consequently, there is also a risk of debt covenant breaches, which may pose a threat to Eastcomtrans’ liquidity position.

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