Fitch upgrades Eastcomtrans

Fitch Ratings said it upgraded Eastcomtrans LLP's long-term foreign- and local-currency issuer default ratings to B from B- and national long-term rating to BB(kaz) from B+(kaz). The outlook is stable.

The agency said the upgrade reflects Eastcomtrans' decreasing dependence on a single client, Tengizchevroil LLP; the longer average term of its contracts and the franchise growth it has achieved without its credit metrics deteriorating.

Eastcomtrans' ratings reflect the company's still quite small and concentrated franchise, dependence on a limited number of funding sources, limitations on the risk management framework and potential corporate governance risks and limited capital flexibility resulting from the ownership structure, Fitch said.

At the same time, the ratings also consider the company's sound performance to date, currently comfortable capitalization and liquidity and the absence of any sharp refinancing spikes in the debt maturity schedule, the agency said.

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