Главная
»
2009
»
Май
»
8
» S&P: Russian Public Transport Co. Mostransavto Cut To 'SD/ruSD' On Missed Coupon/Principal Payments
S&P: Russian Public Transport Co. Mostransavto Cut To 'SD/ruSD' On Missed Coupon/Principal Payments
10:21
MOSCOW (Standard & Poor's) Dec. 24, 2008--Standard & Poor's Ratings Services said today that it has lowered its long-term issuer credit rating on Russian public transport company Mostransavto to 'SD' (selective default) from 'CC'. At the same time Standard & Poor's lowered its long-term debt rating on the company's Russian ruble (RUR) 7.5 billion senior unsecured bond to 'D' from 'CC'. Standard & Poor's also lowered its Russia national scale ratings on the company and debt issue to 'ruSD' and 'ruD', respectively, from 'ruCC'. All ratings were removed from CreditWatch, where they had been placed with negative implications on Sept. 26, 2008.
"The downgrades follow Mostransavto's delay in paying a portion of the approximate RUR480 million coupon and RUR975 million principal installment on its rated RUR7.5 billion (nominal value) bond on Dec. 23, 2008, when they were due," said Standard & Poor's credit analyst Valerie Montmaur.
The bond was placed by fully-owned special purpose vehicle OOO Mostransavto-Finance on Dec. 25, 2007.
Based on Standard & Poor's understanding, the payments have been delayed due to the ongoing resolution of some complex transactions between one of the bondholders and Moscow oblast-owned companies.
As soon as this situation is resolved, Mostransavto will make payment, since it has already reserved the necessary cash to honor these obligations.
"We will subsequently revise our ratings on the company," said Ms. Montmaur. "Despite these payment delays, Mostransavto has confirmed that it continues to honor its obligations with respect to its RUR4.1 billion of unrated loans, and it is for this reason that we consider this default to be selective."
Mostransavto is 100% owned by the Moscow Oblast ('SD'; Russia national scale rating 'ruSD'), which provides the company with ongoing financial support in the form of operating subsidies and guarantees, and services a part of the company's leasing and debt payments directly from the regional budget. Another positive factor is Mostransavto's near-monopoly position in the regional public transport market, which could strengthen through ongoing investments.
