Moody’s changes SNCF Reseau to positive

Moody's Investors Service said it affirmed the Aa2/provisional Aa2 long-term ratings and the P-1/provisional P-1 short-term ratings of SNCF Reseau and changed the outlook to positive from stable.

The actions follow the agency’s recent affirmation of France's government bond rating at Aa2, with a change of outlook to positive.

As SNCF Reseau is 100% state-owned, its debt ratings incorporate a very strong element of government support in accordance with Moody's rating methodology for such entities.

“The affirmation of SNCF Reseau's ratings with outlook changed to positive reflects Moody's view that the rated debt issued by SNCF Reseau will likely continue to have a credit profile very similar to that of the Government of France, despite the anticipated changes to the structure of the rail industry and the impact this may have on SNCF Reseau,” the agency said in a news release.

“Consequently, the ratings of SNCF Reseau's issued debt remain aligned with those of the Government of France (Aa2 positive).”

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