Fitch affirms Russian Railways

Fitch Ratings said it affirmed JSC Russian Railways' long-term foreign- and local-currency issuer default ratings and senior unsecured ratings at BBB. The outlook for the long-term issuer default ratings is negative.

The agency also affirmed the company's short-term foreign- and local-currency issuer default ratings at F3 and its national long-term rating and senior unsecured ratings at AAA(rus). The outlook for the national long-term rating is stable.

Fitch said Russian Railways' ratings continue to be aligned with those of the Russian Federation, reflecting its 100% state ownership and strategic importance, and the agency views positively the cost-saving program implemented by management.

However, capex cuts - about 40% during 2009-2012 - including lower rolling stock purchases, could result in the company losing some market share, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.