S&P cuts CFR Marfa

Standard & Poor's said it lowered its long-term corporate credit rating on CFR Marfa SA to CCC from B-.

At the same time, the implications of the CreditWatch placement were revised to developing from negative, the agency said, adding that the ratings remain on CreditWatch, where it was originally placed on Aug. 10.

S&P noted that the downgrade reflects further delay in finalizing the refinancing facility and Marfa's increasingly weak liquidity position before the repayment of its €120 million Eurobond due on Dec. 10, compared with its expectation of a mid-November closing.

The agency said that the rating reflects Marfa's vulnerable liquidity position, very aggressive financial policy, strong competition in the Romanian transport sector, the company's aged and obsolete rolling stock and an inflexible cost structure that aggravates operational risk.

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