Moody's: Sovcomflot negative

Moody's Investors Service said it changed to negative from stable the outlook on the Ba1 corporate family rating and probability of default rating of Sovcomflot JSC.

Concurrently, Moody's said it changed to negative from stable the outlook on the company's Ba2 issuer rating and the senior unsecured rating assigned to the $800 million Eurobond issued by subsidiary SCF Capital Ltd.

The agency said the change of outlook reflects Moody's concerns about Sovcomflot's ability to restore its credit profile to the levels commensurate with its current BCA, in which the company remains weakly positioned, over the next 12 to18 months.

At the end of March, the company's leverage of 6.5x debt/EBITDA was weaker than Moody's anticipated and higher than would be required for the Ba3 BCA on a sustainable basis, the agency said.

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