S&P affirms Romania's CFR

Standard & Poor's said it affirmed its BB- corporate credit rating on Romania-based CFR SA, the government-owned company responsible for the management of the national rail infrastructure network.

The outlook is positive.

S&P said the credit rating on CFR is predominantly based on governmental financial support for its obligations, such as high-level debt guarantees. CFR is 100% state owned, highly integrated with the government, and the risk of privatization is very low. The company's financial strength is extremely weak, and therefore it relies heavily on government subsidies for its operations and capital investments. These have been insufficient, however, to cover high operational expenditure and an ambitious investment program.

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