CIS Credit Monitor: FLC

FLC (NR/Caa3/NR) – still blurred perspectives for creditors
During recent days FLC, the leasing daughter company of UAC, returned to newspaper headlines. FLC is 28.7% owned by Russian government and 51.8% by United Aircraft Corporation. In turn UAC is controlled by Russian state company Rosoboronexport. FLC debt was supported by comfort letters, provided to the company by Minister of Transport (Levitin) and UAC head. We recall that the company did not execute coupon payments on $150m 2013 Eurobond and $100m CLN in December 2008 which gave creditors right to request early debt repayment. Recently the company again missed a coupon payment. The news that appeared in newspapers give some hope to creditors to get debt repayment on the one hand, however create doubts that the repayment will be made in full – on the other.