Fitch: TransContainer bond BB+

Fitch Ratings said it assigned a senior unsecured rating of BB+ to OJSC TransContainer's RUB 5 billion 8.35% bond due Jan. 26, 2018.

The company has a long-term issuer default rating of BB+, long-term local-currency issuer default rating of BB+, short-term issuer default rating of B, short-term local-currency issuer default rating of B, national long-term rating of AA(rus) and local-currency senior unsecured rating of BB+.

The outlook is negative.

The bond is unsecured and ranks pari passu with all existing unsecured debt, including the outstanding bond series 02 issue of RUB 3 billion due June 2015.

There are no financial ratio covenants or change of control clauses and the mandatory prepayment terms do not relate to all of the company's debt, Fitch said.

The proceeds will be used for general corporate purposes, as well as the refinancing of debt, the agency said.

TransContainer's long-term issuer default rating currently includes a one-notch uplift for parental support from JSC Russian Railways, its present majority shareholder. The negative outlook reflects Russian Railways' earlier decision to further reduce its stake in TransContainer to less than 50%, Fitch said, and uncertainty about the timing of the disposal and the percentage of shares to be disposed.

Fitch also said it will no longer incorporate Russian Railways' parental support into TransContainer's ratings once its stake drops below 50%.

TransContainer's standalone profile is commensurate with a weak BB rating, the agency added.

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