Moody's cuts TransContainer

Moody's Investors Service said it downgraded to Ba3 from Ba2 the corporate family and probability of default ratings of JSC TransContainer, along with its national scale credit rating to Aa3.ru from Aa2.ru.

The outlook is stable.

The downgrade concludes an analysis of TransContainer's rating positioning since the preliminary decision of its major shareholder, JSC Russian Railways, to sell a 25%-plus-one-share stake in TransContainer up to the end of 2011, Moody's said.

This decision has yet to be approved by the Russian government, which is the sole shareholder of Russian Railways.

But, Moody's said it expects that the approval will be received and that the transaction is likely to be executed in the short term.

The ratings account for an anticipated reduction of support for TransContainer by Russian Railways, the agency said.

The ratings also consider its improved post-crisis operating and financial performance in the second half of 2010, which should be sustained this year, driven by the market recovery, Moody's said.

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