Fitch Ratings has affirmed JSC Ukrzaliznytsia’s Long-Term Issuer Default Rating (IDR) at ‘B’ and removed it from Rating Watch Negative (RWN), the outlook is stable, the rating agency said on its website.
“The removal from RWN reflects our view that UR’s immediate liquidity position has improved following the issuance of $ 300 million five-year loan participation notes on July 15. We consider the company comfortably positioned to offset projected debt servicing needs in H2 2021 and 2022,” the report says.
As reported, Ukrzaliznytsia in early July placed five-year eurobonds for $ 300 million at 7.875% per annum. It plans to use the raised funds to service the company’s debt obligations and to repay the loan to JSC Sberbank. Part of the funds is also to be used to replenish the working capital of Ukrzaliznytsia.
In May, Ukrzaliznytsia finalized an agreement with Sberbank on a partial change in the schedule of debt repayment to the bank and plans to gradually reduce the cost of this financing.
