S&P affirms CFR Marfa

Standard & Poor's said it affirmed its B+ corporate credit rating on Romania-based state-owned freight railway company CFR Marfa SA.

The outlook is positive.

S&P said the rating on Marfa reflects strong competition from road and river transport, the very low cost flexibility of its operations, high investment needs, and a weak financial profile. This weakness is demonstrated by high refinancing risk in 2007.

These risks are somewhat mitigated, the agency said, by Marfa's strategic importance to and support from the government of Romania, its strong position in the national freight market, and improving regulation.

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