Moody’s raises Eastcomtrans

Moody's Investors Service said it upgraded Eastcomtrans LLP’s (ECT) corporate family rating to B3 from Caa1, senior secured notes to B3 (LGD3) from Caa1 (LGD3) and national scale corporate family rating to B1.kz from B3.kz.

The agency also upgraded the probability of default rating to B3-PD from Caa1-PD.

The outlook is stable.

Moody’s said the action reflects its view that Eastcomtrans resolved the situation around the covenant breaches under various debt facilities that it incurred in 2016-17 following a sharp deterioration of the local currency and a slowdown in the economic activity in Kazakhstan.

“The agency believes that the risk of acceleration of ECT's debts in the next 12-18 months as a result of non-compliance with covenants has been materially reduced or eliminated through obtaining of waivers, covenant resetting, asset sales and refinancing,” Moody’s said in a news release.

“These achievements complement the liquidity restructuring process initiated by ECT earlier in 2017 when it arranged the extension of its senior secured $100m notes (of which around $50m is currently outstanding) to 2021-22 from 22 April 2018.”

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