Standard & Poor’s rating agency (S&P) upgraded DeloPorts’ long-term credit rating from B+ to BB- with a “stable” outlook.
The rating update reveals expectations of S&P analysts about the recovery of container market at the Black Sea during the next 2-3 years, and DeloPorts gaining benefits from improvement of the business environment.
The experts anticipate that total handling volume will increase by 12-15% in 2016 and will continue increasing by 2-5% in 2017-2018. Such dynamics of operating results will positively influence on free cash flow of the Company regardless the substantial size of planned investments.
S&P expects the stable level of DeloPorts’ capital investments in handling capacity increase of the grain and container terminals, and decline in ratio of flow of funds (FFO) to liabilities to 39-43% in 2017 and to 33-37% in 2018. However, these indicators will correspond with current assessment of financial risks of the Company.
DeloPorts is a Russian holding company that owns and operates stevedore assets of Delo Group in the Port of Novorossiysk. DeloPorts consolidates a container terminal, a grain terminal and a bunkering services company. Turnover of the terminals under management amounted to 5.5 million tonnes in 2015. Delo Group is owned by Sergey Shishkarev, the former Chairman if the State Duma Committee on transport.