Moody’s upgraded the corporate rating of Sovcomflot

SovcomflotThe international rating agency Moody’s upgraded the corporate rating of Sovcomflot to Ba1, but remained the negative outlook. The Moody’s experts point out that upgraded of the corporate rating is due to improved financial performance. The Russian shipping company surprised investors with high profit and increasing revenues during the first quarter of 2016, which enabled the rating agency to increase the corporate rating with one stage. However, the poor liquidity and remaining debt, keep the company outside the investments grade and outlook stays negative.

Previously the Russian shipping company Sovcomflot reported net profit of 103.1 million USD in Q1 2016, which represent an increase of 9.2% yoy. EBITDA, according to the international financial reporting standards, for the period increased by 6.6% yoy to 187.5 million USD.

Sovcomflot is one of the largest shipping companies in the world and the largest in Russia. It specializes in the transport of hydrocarbons and offshore supply operations. The Sovcomflot has the large ice-class fleet in the world, ready to operate in difficult climatic conditions. The company’s fleet consists of gas tankers, tankers for transportation of crude oil and petroleum product tankers, ice-breaking supply vessels, research vessels, bulk carriers and chemical tankers.