S&P revises Sovcomflot view to positive

S&P said it revised the outlook for Sovcomflot and financing unit SCF Capital DAC to positive from stable and affirmed the BB+ issuer credit ratings as well as the BB issue rating on the company’s senior unsecured notes.

“The positive outlook reflects that we could upgrade Sovcomflot in the next 12 months if we believe that its improved resilience against charter rate volatility will support solid EBITDA performance and help to improve free operating cash flow (FOCF) generation underpinned by diminishing growth capex and that the company will be able and willing to gradually reduce debt to stabilize adjusted FFO to debt at 20% or above,” S&P said in a press release.

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