Moody's: Eastcomtrans notes B3

Moody's Investors Service said it assigned a definitive B3 (LGD3, 45%) rating and a stable outlook to Eastcomtrans LLP's $100 million five-year notes.

Proceeds will be used to refinance part of the company's existing debt and to finance the expansion of its fleet.

The agency said Eastcomtrans' B3 corporate family rating primarily reflects the company's small size, its high industry concentration, its high customer concentration, its highly concentrated ownership, the potential evolution of Eastcomtrans' business profile and uncertainty regarding its future operating and financial performance under its target business model, and the company's overall exposure to an emerging market operating environment.

More positively, Eastcomtrans' rating also factors in its solid share of around 9% of the Kazakhstan freight rail transportation market in terms of railcar fleet, its modern railcar fleet, its long-term relationships, its high operating efficiency, its sustainable projected financial metrics, its adequate liquidity and manageable foreign currency risk and the high market value of its railcar fleet, Moody's said.

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