Fitch Ratings assigns B rating to UZ’s planned five-year Eurobond issue
The international rating agency Fitch Ratings assigned the expected five-year Eurobond issue of Ukrzaliznytsia the expected priority unsecured rating “B (EXP)” and placed it on the Rating Watch list “Negative”.
UZ’s creditworthiness on an independent basis “CCC” and a scoring of 27.5 in accordance with the methodology of the agency for rating companies associated with the state, determine the rating of the company on a par with the sovereign IDR of Ukraine “B”. Rating Watch status “Negative” reflects insufficient liquidity available for use at the end of April 2021. After the successful placement of the bonds, UZ’s ratings are likely to be excluded from the “Rating Negative” Rating Watch list, the report said.
It is reported that Ukrzaliznytsia intends to use the proceeds from the loan to refinance the existing short-term debt, which will improve the company’s liquidity position.