Moody's lowers Russian Railways

Moody's Investors Service said it downgraded to Baa1 from A3 the issuer rating of JSC Russian Railways.

The outlook is negative. The action concludes the review for downgrade that began on Jan. 21 due to the challenging market environment facing the company.

Moody's said the downgrade reflects its decision to increase the default dependence assessment.

Given the likeliness that the factors that would affect the health of the Russian economy and the sovereign credit would also affect Russian Railways, the agency said it considers that there is an increasing correlation of the financial profiles of the Russian government and Russian government-related issuers in the crisis environment.

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