Fitch revises State Transport view to positive

Fitch Ratings said it revised the outlooks on PJSC State Transport Leasing Co.’s BB+ and JSC Rosagroleasing’s BB long-term issuer-default ratings to positive from stable and affirmed the ratings. The positive outlooks reflect Fitch’s expectation of strengthening linkages with the Russian government.

Both companies are entirely owned by the Russian government.

“The positive outlook on STLC reflects Fitch’s expectation that the likelihood of support that the company may receive from the Russian sovereign could increase due to: (i) gaining access to long-term funding from the National Wealth Fund; and (ii) the increase in the volume of capital support (up to RUB 100 billion within the next three years as per management’s expectation,” said Fitch in a press release.

The change in outlook for Rosagroleasing mirrors Fitch view of recent equity injections from the Russian government, which demonstrate the company’s importance and policy role to Russia. “We also note the change in RAL’s strategy towards higher growth and increase of market share in agricultural leasing, which contributes to strengthening of the policy role,” Fitch said.

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