OREANDA-NEWS. Moody's Investors Service has today upgraded the ratings of Sovcomflot following an earlier decision by Moody's to upgrade Russia's long-term ratings and foreign-currency country ceiling to Baa2, with a stable outlook.

Ratings affected are as follows:

- Local currency issuer rating upgraded to Baa1 from Baa2

- Foreign currency issuer rating, constrained by the Russian foreign-currency ceiling, upgraded to Baa2 from Baa3

The outlook on all ratings is stable.

As a government-related issuer (GRI), Sovcomflot's ratings benefit from ratings uplift tied to government's ratings. Per Moody's GRI rating methodology, the inputs into Sovcomflot's ratings are as follows:

- Government's local currency ratings

- Baseline credit assessment of 5
- Low default dependence
- High support

Moody's assessments of Sovcomflot's baseline credit risk, default dependence, and government support remain unchanged at this stage. The ratings upgrade therefore solely reflects the impact of the sovereign ratings upgrade, as applied through Moody's GRI rating methodology.

As of FYE 2004, Joint Stock Company Sovcomflot had total assets of US$ 1,799 million and revenues of US$ 393 million; it is headquartered in Moscow.