Ukrzaliznytsia is working on debt refinancing

Ukrzaliznytsia is working on refinancing debt, which negatively affects the company’s credit rating, informs Railway Supply magazine with reference to UZ.

Ukrzaliznytsia is working

The leading rating agency Standard & Poor’s made a decision to downgrade the credit rating of JSC Ukrzaliznytsia 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 date of debt repayment.

Infrastructure Minister discussed the renewal of Ukrzaliznytsia rolling stock with Wabtec

So, the only factor in this decision is the approximation in COVID circumstances of the maturity of part of the loan in favor of Sberbank JSC, which falls on May 30 of this year. As the financial market and the agency know, Ukrzaliznytsya is working on several options for refinancing this debt and will undoubtedly not allow a default on borrowing obligations.

In the context of a pandemic Ukrzaliznytsia successfully implemented measures to support liquidity last year, in particular, they discussed with banks the increase of the limits of credit lines and took measures to optimize costs. High credit quality is one of the key priorities of Ukrzaliznytsia and the company will once again ensure their confirmation in the coming weeks.

Refinancing of liabilities will be announced later.


«Railway Supply» magazine №3-2020