S&P rates Sovcomflot notes BB

S&P said it assigned a BB+ long-term corporate credit rating to SCF Capital Ltd.

The agency also said it assigned a BB rating to the proposed senior unsecured notes to be issued by SCF Capital and guaranteed by the parent company, PAO Sovcomflot.

The ratings reflect a view of SCF Capital as a core subsidiary of Sovcomflot, S&P said.

SCF Capital also enjoys a strong degree of support from the group and plays an important role as a treasury and liquidity management center, the agency said.

This rating on the notes is one notch lower than the corporate rating because the notes will be structurally subordinated to debt issued by the operating subsidiaries of the group, S&P said.

The outlook is negative.

The ratings reflect Sovcomflot’s diversified operations and robust market position as the second-largest tanker owner in the world, the agency said.

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