Standard & Poor's upgrades Ukrainian Railways’ credit rating outlook to “Positive”
One of the leading rating agencies Standard & Poor’s changed Ukrainian Railways’ credit rating outlook from “Negative” to “Positive”. This indicates the positive impact of the recent financial debt management transaction on the Company's investment attractiveness.
The agency said the positive outlook reflects the potential for a credit rating upgrade after refinancing of the debt to be repaid within the next 12 months, as well as the removal of the rating from the CreditWatch list, which in turn was an indicator of the Company's future debt management actions.
As reported previously, in May-end, Ukrainian Railways successfully finalized agreement with Sberbank (Ukraine) on re-profiling the debt amortization schedule, as well as significant improvement of the terms of these loans. This balanced the cash flow and reduced the burden on the Company's liquidity.
It is worth reminding that this bank’s loans were incurred by the railways of Ukraine for the purpose of financing the preparation of infrastructure, involved in the final part of the «Euro 2012» football championship.
Ukrainian Railways is working on several Sberbank debt refinancing options to be implemented subject to favorable market conditions. The Company, as a participant in the international capital market, continues to follow the previously stated principle of responsible attitude to its debt obligations, and meets all debt obligations in full.