JSC “Ukrainian Railways” is working to refinance debt, which has negatively affected the company's credit rating
The leading rating agency Standard&Poors has decided to downgrade the credit rating of JSC “Ukrainian Railways” from B- to CCC. The reason for this decision is solely the agency's methodology for determining the rating level depending on the time remaining until the next maturity date.
Thus, the only factor in this decision is the approximation, in the context of COVID, of the maturity date of part of the loan debt to JSC "Sberbank", which falls on May 30 of this year. Both the financial market and the agency know that JSC “Ukrainian Railways” is working on several options for refinancing the debt and will undoubtedly prevent the occurrence of infulfillment of loan obligations.
Last year, amid the pandemic, JSC “Ukrainian Railways” successfully implemented measures to maintain liquidity, in particular, worked with banks to increase credit line limits and took steps to optimize costs. High credit quality is one of the key priorities of JSC “Ukrainian Railways” and the company will once again ensure its confirmation in the coming weeks.
Information on refinancing of liabilities will be released later.