Fitch Ratings Upgraded STLC to BB+ with a Stable Outlook

On 19 August 2019 Fitch Ratings upgraded STLC’s long-term issuer default ratings (IDRs) in foreign and local currencies to BB+ from BB, outlook was changed to “stable” from “positive”. Short-term IDR was affirmed at B. STLC’s senior unsecured debt rating and ratings of the guaranteed Eurobonds issued by STLC’s subsidiaries GTLK Europe DAC / GTLK Europe Capital DAC were uplifted for one notch to BB+ in line with the long-term IDRs.

In assessing state support STLC could potentially receive, the rating agency views positively: (i) 100% state ownership; (ii) the track record of past equity injections; (iii) the low cost of potential support given the company's small size; and (iv) the company's policy role (albeit somewhat limited) in the implementation of state programmes to support the transportation sector, stated Fitch Ratings in the press release published on 19 August 2019.

The rating action followed the upgrade of Russia's sovereign rating by Fitch Ratings to BBB on 9 August 2019.

Full information on STLC’s credit ratings can be found at https://www.gtlk.ru/en/investors/ratings/.
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