Fitch puts Ukrainian Railway on watch

Fitch Ratings said it placed Ukrainian Railway's long-term issuer default and senior unsecured debt ratings and its special purpose vehicles’ ratings on rating watch negative.

“The rating action reflects our view of UR's tightened immediate liquidity position not fully offsetting debt servicing in 2021, with uncertainty about the pace of economic recovery after the coronavirus pandemic,” Fitch said in a press release.

The agency noted the railway’s 2021 debt amortization schedule includes repayments of up to UAH 5.69 billion in the remaining three quarters of 2021, with UAH 3.225 billion maturing on May 30, which materially pressures its already weakened liquidity position.

As of the end-April 2021, UR's liquidity coverage ratio, available undrawn lines of credit and unrestricted cash/scheduled repayments, was less than 1x, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.