S&P upgrades Ukrainian Railway

S&P said it raised its long-term issuer credit rating on Ukrainian Railway PJSC (Ukrzaliznytsia) to CCC+ from SD (selective default).

At the same time, the agency affirmed the CCC+ issue rating on the $500 million loan participation notes due 2021 issued by Shortline plc.

S&P said the upgrade reflects the fact that Ukrzaliznytsia has largely completed the restructuring of its debt and completely removed the cross-default provisions of its notes due 2021 with as yet unrestructured UAH 3.9 billion of local bank debt.

“The unrestructured debt is about 12% of Ukrzaliznytsia's total debt, has been under renegotiation for several years, and we view the risk of bankruptcy as limited at this stage,” the agency said in a news release.

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