Fitch: Sovcomflot to positive

Fitch Ratings said it revised the outlook on PAO Sovcomflot's long-term issuer default rating to positive from stable.

The agency also affirmed Sovcomflot's long-term issuer default rating and SCF Capital DAC’s (formerly SCF Capital Ltd.) senior unsecured notes, which are guaranteed by Sovcomflot, at BB.

Fitch said the outlook revision reflects the improving quality of the company's long-term contracts as the delivery of new LNG and offshore vessels will be completed in 2017 and the company will fully benefit from longer-term contracted revenue from 2018. This is somewhat offset by growing market risk exposure in crude oil and oil product tankers segments, and continuously sizable capex.

The BB rating continues to incorporate a one-notch uplift to its BB- standalone rating for parental links with its sole shareholder, the Russian state (BBB-/btable), the agency explained.

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