S&P places TransFin-M on watch

S&P said it placed the B rating on TransFin-M on CreditWatch with developing implications.

The placement follows TransFin-M's announcement that, at the end-2019, TransFin-M and the VEB.RF together created a new freight railway operator via TransFin-M's subsidiary Atlant LLC, with TransFin-M's business model evolving as a result. TransFin-M continues to be the controlling owner with a 75% stake, while VEB.RF owns the remaining 25% of capital.

“We are placing our rating on TransFin-M on CreditWatch with developing implications to indicate that we could affirm, raise, or lower our long-term B rating on the company after we review the new business structure, in particular the combined group's strategy, business mix, liquidity profile, and capital structure,” said S&P in a press release.

The agency said it sees resolving the placement in the coming months after receiving detailed information on the entity’s new strategy.

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