S&P cuts Hungarian State Railways outlook to negative

Standard & Poor's said it revised its outlook on Hungarian State Railways Co. Ltd. to negative from stable following the outlook revision on the Republic of Hungary to negative from stable on March 14.

At the same time, the BBB- long-term and A-3 short-term credit ratings on Hungarian State Railways were affirmed, the agency said.

Following the outlook change on the state, S&P said that it does not expect the government's willingness to support the company to reduce, but its ability to provide the company with timely and adequate financial support could become weaker.

The agency noted that the ratings reflect Hungarian State Railways's position as the vertically integrated rail infrastructure operator in the Republic of Hungary and as an entity 100% owned by the state.

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