On July 31, 2020, S&P Global Ratings affirmed its 'B/B' ratings on TransFin-M, with a negative outlook, the rating agency informed.
Transfin-M PC (TFM) is expected to complete its acquisition of 40,000 freight railcars by year-end, thereby becoming one of the top players in the Russian freight rail transportation market with 72,000 railcars.
The acquisition will be funded by a mix of sources, including new debt, resulting in high leverage under S&P's base case.
The negative outlook reflects uncertainties related to the final terms of the deal and the risks that the company's operating performance and cash flow generation could be weaker than we expect due to challenging market conditions.
TransFin-M Public Company (tax number: 7708797192) established on February 4, 2005 by NPF Blagosostoyanie has developed and is applying a unified equipment leasing method. The company's activity profile includes the leasing of railway vehicles, commercial real estate, equipment, automobiles and special-purpose machines.
