OREANDA-NEWS. National Rating Agency has raised its credit rating on TransFin-M Public Joint-Stock Company to 'AA+'.

The rating upgrade is driven by the positive dynamics of the leasing company's key IFRS and RAS financials, actual capital increase after the placement of convertible bonds, and considerable improvement of the asset and liability structure due to longer-maturity liabilities. TransFin-M retains its strong position in the Russian leasing market and demonstrates high transparency and openness to public. The rating benefits from the company's adequate liquidity, steadily growing leasing portfolio and efforts to diversify the leasing business.

The rating continues to be constrained by the company's high exposure to the railway sector and associated high sensitivity to adverse changes in Russia's macroeconomic situation. Offsetting these weaknesses are the potential reestablishment of daily lease rates in 2015 in the wake of the inflation-driven increase in the cost of rolling stock and its surplus reduction, and the rising metal costs. Given the company's sizable bank borrowings, we do not rule out that the company's business may be affected by the interest risk.