According to the Agency, the stevedore holding DeloPorts is a strategic asset of Delo Group, and its rating confirms a reliable business reputation of the parent company and a stable business strategy.
The Agency associates maintenance of the DeloPorts rating and the stable outlook with the strengthening and diversification of the Group's controlling company’s (Management Company “Delo”) business after acquiring 99.6% of the largest Russian railway operator PJSC TransContainer in April 2020. S&P emphasizes that the Group expects to receive synergies from the cooperation of the two companies after a full integration of TransContainer. According to the Agency, the larger and more diversified business helps the company to offset higher leverage at the consolidated level resulting from the acquisition and the complicated economic situation caused by the COVID-19 pandemic.
S&P predicts that the impact of COVID-19 will have a moderate effect on DeloPorts operations in 2020 and expects recovery in 2021. A global recession and a commodity circulation decrease can cause the general slowdown in cargo turnover. S&P expects DeloPorts cargo turnover to remain a minimum of the last year’s level.
Igor Yakovenko, CEO of Delo Group and DeloPorts, commented on the Standard & Poor’s forecast:
“Under the conditions prevailing in the global market affected by the COVID-19, maintaining the rating and a stable outlook indicates the right strategic development course of DeloPorts as part of Delo Group. We maintain a stable financial state of the Company, we also continue to implement the investment projects aimed at the Group’s capacities increase and at the operating efficiency improvement.It is important that the assets of the DeloPorts, as a strategic part of the transportation and logistics industry, lead non-stop operations to the benefit of the country's infrastructural security. We preserve all workspaces and work on the quality of services improvement for our clients in the pandemic situation."
Source - S&P dated 20.05.2020
About the CompanyDeloPorts 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.
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.