Fitch boosts Trans-Oil

Fitch Ratings said it upgraded Aragvi Holding International Ltd.'s (Trans-Oil) long-term foreign-currency issuer default rating and long-term local-currency IDR to B+ from B. The agency also raised Aragvi Finance International DAC’s $500 million of 8.45% senior unsecured notes due 2026 to B+/RR4 (50%) from B/RR4.

The local-currency upgrade reflects Trans-Oil's strengthened credit profile over the last three years with a wider scale of operations and expanded geographical diversification outside Moldova. “The upgrade also reflects our expectations of consistently positive free cash flows (FCF) from FY24 (year-end June) and the company's continued adherence to a conservative financial policy since FY22,” Fitch said in a press release.

The higher foreign-currency rating mirrors an adequate hard-currency debt service ratio of more than 1x over the next 18 months, the agency explained.

The outlook is stable.

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