S&P: Russian Railways on positive watch

Standard & Poor's said it placed its BB+ corporate credit rating on Russian Railways JSC (RZD) on CreditWatch with positive implications, reflecting the company's improving business profile.

The agency said RZD has benefited from continued growth in national demand for rail transportation, driven by economic development and an improving regulatory framework.

RZD's operating efficiency is expected to benefit in the medium term from the anticipated transfer of loss-making rail-passenger operations to a directly state-owned company and the gradual replacement of existing cross-subsidies from the freight segment with budget allocations from the state, S&P added.

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