Moody's: New Forwarding bonds B1

Moody's Investors Service said it assigned a provisional B1 rating, with a positive outlook, and a loss given default assessment of LGD4-66% to three proposed issues of three-year domestic bonds (RUB 5 billion each) to be issued by New Forwarding Co.

New Forwarding is a Russian wholly owned subsidiary of Cyprus-domiciled Globaltrans Investment plc.

Moody's said the ratings assigned to New Forwarding are one notch below the Ba3 corporate family rating of Globaltrans, reflecting the structural subordination of the bonds to secured debt within Globaltrans's debt portfolio structure.

The share of secured debt is estimated to comprise around 26% of the Globaltrans group's total debt following the proposed bonds issuance. Moody's said it assumes that the proposed bonds will rank pari passu with other unsecured debt of the operating companies of the group.

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