Fitch improved outlook on the long-term default rating of Sovcomflot

SovcomflotThe international rating agency Fitch has improved the outlook on the long-term default rating of Russian shipowner Sovcomflot from “stable” to “positive”, affirming the grade “BB”. The upgrade reflects the steady improvement of the company’s financial profile mainly driven by the tanker shipping sector’s recovery, while the company maintains heavy capex plans. The rating agency Fitch took into account the long-term contracts of the shipowner and the sustainability of improved tanker shipping fundamentals. Sovcomflot continues to benefit from a strong business profile, which is compatible with that in the high “BB” rating category.

“The change in the forecast on the rating of Sovcomflot to positive reflects the improvement in the quality of the company’s long-term contracts”, said the report of Fitch group.

Sovcomflot Group (SCF Group) is Russia’s largest shipping company, one of the world’s leading shipowners for transportation of hydrocarbons, as well as servicing the offshore exploration and production of oil and gas. Own and chartered fleet includes 145 ships with a total deadweight of over 13 million tons. More than 30% of ships have a high ice class. Sovcomflot participates in servicing large oil and gas projects in Russia and the world, such as Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoye, Novy Port, Yamal LNG, Tangguh (Indonesia). The company’s head office is in St Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol and Dubai.