Fitch lifts PKP Intercity to positive

Fitch Ratings said it revised the outlook on PKP Intercity SA to positive from stable and affirmed its long-term foreign-currency issuer default rating at BBB-, long-term local-currency issuer default rating at BBB and national long-term rating at A(pol).

The outlook revision reflects strengthening links with the company's majority shareholder, the Polish state, given that the share of debt guaranteed by the state continues to rise, Fitch said.

The outlook revision also considers improved remuneration under the public service contracts for passenger transport services agreed with the Ministry of Infrastructure and Development, which should allow for better cost coverage and higher cash flows from 2014, the agency said.

The company's ratings are currently assessed three notches below Poland's ratings in accordance with the agency's parent and subsidiary rating linkage criteria, Fitch said.

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