S&P: Hungarian State Railways still on developing watch

Standard & Poor's said its B+ long-term corporate credit rating on Hungarian State Railways Co. Ltd. remains on CreditWatch with developing implications, where it was placed in May. The short-term rating is unchanged at B.

The decision to maintain the long-term rating on CreditWatch, despite the recent favorable news about the company's receipt of a cost reimbursement from the Hungarian government, mainly reflects a continued lack of visibility on the government's future strategy for the company, S&P said.

The agency said it stills require clarification on the implementation of the rail network management contract between the company and the government, as well as on the likelihood of any forthcoming measures to improve the sustainability of its liquidity position and capital structure.

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