S&P ups Ukrainian Railways

S&P said it raised its ratings for Ukrainian Railways JSC’s long-term foreign-currency issuer credit rating to CCC+ from SD, selective default, and long-term local-currency issuer credit rating to CCC+ from CC.

The upgrades follow UR completing its eurobond restructuring, the agency said. UR restructured the equivalent of $894.9 million of bonds after getting consent from most of the bondholders to postpone interest and principal payments on the debt by 24 months.

“The completed debt reprofiling has significantly eased UR's debt service needs until January 2025, when payments on the amended eurobonds will resume. The debt restructuring removes immediate pressure from the company's liquidity position and its contractual debt repayments have declined by over 90% over 2023-2024 to about $40 million, from $627 million (for both years) before the restructuring. Repayments now mainly comprise payments on FC and LC commercial bank loans and credit facilities, held primarily for international financial institutions and Ukraine state-owned banks working capital lines servicing,” S&P said in a press release.

The outlook is negative.

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