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30.11.2009
Credit-Rating maintains ratings of railway companies at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it continues to maintain long-term credit ratings at uaBBB with stable outlook assigned to six issues of registered coupon bonds issued by railways companies, which are associated with Ukrzaliznytsya State Administration of Railways of Ukraine. The overall amount of the issues is UAH1.0bn.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Credit-Rating notes that according to its National Scale methodology, the agency considers issuer’s capacity to meet its commitments on obligations in the domestic market in a timely and full manner. The issuers’ settlements on international obligations are considered as factors which may affect the issuers’ capacity to male payments on domestic obligations, but are not primary while assigning national scale ratings. In this connection Credit-Rating continues to follow the course of events in terms of restructuring obligations of railways companies towards Barclay’s Capital. In case of rising the risks associated with payments on the companies’ domestic obligations, the rating agency may revise credit ratings assigned to railway companies.
Factors maintaining the credit rating
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A monopolistic standing of Ukrzaliznytsya State Administration of Railways of Ukraine, which incorporates the issuer in the sector of railways.
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Strategic importance of railways for Ukraine’s economy.
Factors constraining the credit rating
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Ongoing negative trends in Ukraine’s economy, which weighs on volumes of cargo transportations.
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Anticipated significant investments.
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Opacity with regard to prospects for reforming and development strategy of Ukrzaliznytsya State Administration of Railways of Ukraine.
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Absence of consolidated financial statements of Ukrzaliznytsya State Administration of Railways of Ukraine.
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Dependency of Ukrzaliznytsya State Administration of Railways of Ukraine’ activities upon state regulatory policy.
Credit-Rating’s note: the agency’s credit ratings have been assigned to registered coupon bonds (series A) issued by Donetsk Railways State Company for the amount of UAH150m, with 2-year original maturity; registered coupon bonds (series A) issued by Lviv-based Lvivska Railways State Territorial and Industry Association for the amount of UAH80m, with 2-year original maturity; registered coupon bonds (series A) issued by Odessa Railways State Company for the amount of UAH250m, with 2-year original maturity; registered coupon bonds (series A) issued by Kharkiv-based Southern Railways for the amount of UAH100m, with 2-year original maturity; registered coupon bonds (series B) issued by Kiev-based State Territorial and Industry Association South-West Railways for the amount of UAH200m, with 2-year original maturity.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and
analytic department
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
