Fitch upgrades Sovcomflot

Fitch Ratings said it upgraded PAO Sovcomflot's long-term issuer default rating to BB from BB-.

The outlook is stable.

The agency also upgraded SCF Capital Ltd.’s senior unsecured notes, which are guaranteed by PAO Sovcomflot, to BB from BB-.

Fitch said the upgrade reflects the steady improvement of Sovcomflot's financial profile mainly driven by the tanker shipping sector's recovery, while the company maintains heavy capex plans. Given the volatile nature of the shipping sector, the sustainability of improved tanker shipping fundamentals is key to further positive rating momentum.

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