Moody's may upgrade Sovcomflot

Moody's Investors Service said it placed the ratings on JSC Sovcomflot on review for possible upgrade following an earlier decision by Moody's to place Russia's sovereign ratings on review for possible upgrade.

Sovcomflot's Baa2 local currency long-term issuer rating and its Baa3 foreign currency long-term issuer rating are under review.

As a government-related issuer, Sovcomflot's ratings benefit from expected government support, which is a function of the high support and low dependence assumptions made by Moody's as part of its joint default analysis for government-related issuers.

Moody's added that - given unchanged assumptions on government support and dependence - a one-notch upgrade of the Russian sovereign rating would result in a respective one-notch upgrade of all ratings of Sovcomflot, which has a baseline credit assessment of 5.

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