Moody's rates New Forwarding bond B1

Moody's Investors Service said it assigned a provisional B1 (LGD 5, 74%) rating to a proposed five-year RUB 3 billion bond to be issued by New Forwarding Co., which is a Russian subsidiary of Globaltrans Investment plc, a subsidiary of Transportation Investments Holding Ltd.

The outlook is stable.

The bond is to be issued to refinance some of New Forwarding's foreign-currency denominated liabilities and for general corporate purposes.

The obligations of the bond will be guaranteed under a suretyship provided by Globaltrans, Moody's said. The rating has been notched down by one, reflecting a significant amount of secured debt within the group ranking ahead of the unsecured bond, Moody's said.

Given the significant amount of secured debt, the agency said it assumes that trade debtors of the group would be treated similar to the treatment of secured debt holders, with trade debt ranked ahead of the proposed bond.

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