The main reason for the downgrade is the consolidation of 99.64% of TransContainer PJSC, the leading Russian intermodal container operator, by Delo Group, and the economic and market consequences caused by the coronavirus pandemic spread.
According to Fitch, DeloPorts and TransContainer are the key assets of the Management Company “Delo”. A strong correlation between DeloPorts and MC “Delo” ratings is caused by the operational interconnectedness of the subsidiary and the parent company. Fitch’s stable outlook shows that MC “Delo” can flexibly reallocate resources within the Group. It reduces the business risks and allows the Group to have a comfortable, balanced business model.
MC “Delo” and DeloPorts CEO Igor Yakovenko commented on the Fitch’s decision: “Despite the acquisition of TransContainer and the economic consequences caused by the epidemic, the financial position of the Group remains stable as well as its operational processes.”
About the Company
DeloPorts is a holding company that owns and operates stevedore assets of Delo Group in the port of Novorossiysk. DeloPorts consolidates NUTEP Container Terminal, KSK Grain Terminal and Delo Service Company.
Delo Group is the major Russian transportation and logistics holding company that owns and operates port container terminals in the Azov and Black Sea, Baltic and Far-Eastern basins, a wide network of railway container terminals, a fleet of containers and flatcars. The headquarters of the Group is the Management Company “Delo”, 70% is owned by the Group’s founder Sergey Shishkarev and 30% owned by State Corporation Rosatom.
The Group’s stevedore business is represented by DeloPorts holding and the leading operator of port container terminals Global Ports. TransContainer and Ruscon assemble the transportation and logistics business of Delo Group.
Source – Fitch dated 15.06.2020