S&P rates Hungarian State Railways BBB-

Standard & Poor's said it assigned BBB- long-term and A-3 short-term issuer credit ratings to Hungarian State Railways Co. Ltd., which is 100% owned by the Republic of Hungary.

The outlook is stable.

The agency said the ratings reflect Hungarian State Railways' strategic importance as the major rail passenger transport provider and network operator in Hungary, the strong, ongoing and extraordinary support provided by the sovereign and the low risk of privatization.

These strengths are offset by the company's very weak financial profile, as indicated by its high leverage and negative operating cash flows, S&P said.

© 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.