S&P upgrades Ukrzaliznytsia rating amid wartime conditions
S&P upgrades Ukrzaliznytsia rating amid wartime conditions (Photo:УЗ / Facebook)
The S&P Global Ratings international rating agency raised the rating of Ukrzaliznytsia, Ukraine’s state rail transport operator, to the level of CCC+.
The rating was upgraded after the recent restructuring of $894.9 million debt. This agreement, along with other projects with international partners, alleviated pressure on the company’s liquidity, meaning that its contractual payments of arrears in 2023-2024 will be reduced by more than 90%, explained the company’s press service.
The agency also acknowledged Ukrzaliznytsia’s successful restructuring with the European Bank for Reconstruction and Development (EBRD) for 150 million euros in credit, as well as the cancellation of debts to Russian banks in accordance with an August 2022 law.
Ukrzaliznytsia’s rating has been raised to the same level of Ukraine’s sovereign rating, the highest possible under wartime conditions, said the company.
S&P downgraded Ukrzaliznytsia’s rating in December 2022 from CCC- to CC after the company proposed deferring payment to Eurobond holders for 24 months. The company completed the deferment formalities in January.
In 2022, Ukrzaliznytsia recorded a net loss of UAH 10.8 billion ($294 million), with passenger transportation costing UAH 13.3 billion ($350 million).
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