S&P raises Ukrainian Railways

S&P said it raised its ratings on Ukrainian Railways and the company’s notes to B- from CCC, following the successful restructuring of the company’s $200 million loan.

With its $200 million loan within days of maturing, UR restructured the loan with an extension of the amortization schedule for the next three years, with the possibility of early repayment in 2021, S&P said.

“We understand that the bank receives the originally promised value and that the interest rate is the same as on the original loan. We, therefore, concluded that the extension of the bank loan was performed in the normal course of business, despite concerns regarding the deal being closed just days before maturity,” S&P said in a press release.

UR does have a $50 million installment on its notes due in September and other maturities next year. The company plans to refinance most of the maturities, S&P said.

The outlook is negative.

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