Fitch affirms Russian Railways

Fitch Ratings said it affirmed JSC Russian Railways' long-term foreign currency issuer default rating at BBB with a stable outlook. Fitch also affirmed RZD Capital Ltd.'s foreign currency senior unsecured rating at BBB.

RZD's ratings are aligned with those of the Russian Federation (BBB/stable/F3) given its 100% state ownership and strategic importance to the Russian economy.

RZD's ratings reflect the strong links between the state and the company, including the annual tariff and capex approval by the federal government, the provision of federal and regional subsidies for passenger and freight transportation, state-owned bank financing and direct equity injections for capital expenditure funding, Fitch said.

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