S&P slashes Ukrainian Railways

S&P said it downgraded Ukrainian Railways to CCC from B- and placed its ratings on CreditWatch with negative implications.

The railroad’s $116 million loan with a local bank matures on May 30, and though it is working on refinancing, it has yet to secure refinancing, the agency said.

“We see an increasing likelihood that UR could engage in a restructuring if it fails to accumulate sufficient cash or secure a refinancing option for its approaching debt maturity,” S&P said in a press release.

The CreditWatch indicates the agency could consider a multi-notch downgrade if UR does not arrange a refinancing or accumulate sufficient funds to meet its upcoming maturities repayment or proceeds with the loan restructuring, which would be viewed as distressed, S&P said.

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