The rating agency Standard & Poor’s indicates a significant weakening of the solvency of Ukrzaliznytsia.
International rating agency Standard & Poor’s has downgraded Ukrzaliznytsia’s rating to CC from CCC+ over a proposal to defer payments on two Eurobond issues for a year from January this year, with a negative outlook. The S&P press service reported this on Friday, December 20.
“We see a significant weakening of UZ’s ability to repay its debt and believe that a default on UZ’s debt is virtually certain in accordance with our methodology. As a result, we have downgraded UZ’s long-term issuer credit rating,” the agency said in a statement.
It noted that the negative outlook reflects S&P’s opinion that Ukrzaliznytsia is likely to implement its debt restructuring plans in the next few weeks, which the agency considers to be tantamount to default.
We remind you that Ukrzaliznytsia carried a record number of passengers and reached a high rate of cargo transportation in 2024.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.