Fitch rates Freight One, TransContainer on watch

Fitch Ratings said it placed OJSC Freight One's BBB- long-term foreign- and local-currency issuer default ratings and OJSC TransContainer's BB+ long-term foreign- and local-currency issuer default ratings on Rating Watch negative.

The negative watch follows news made by JSC Russian Railways that its board made a preliminary decision to sell 75% less two shares in Freight One and 25% plus one share in TransContainer, Fitch said.

The disposal is preliminarily scheduled for the third quarter of 2011 for Freight One and by the end of 2011 for TransContainer, the agency said.

If completed, the proposed sales would decrease the company's shareholding in both Freight One and TransContainer to a minority stake, Fitch said.

If there is a new majority shareholder of Freight One or TransContainer, their ratings may be impacted by the relative credit strength of their respective new parents and the parent-subsidiary arrangements put in place, the agency said.

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