Fitch Ratings has downgraded the State Administration of Railways Transport of Ukraine's (Ukrzaliznytsia) Long-term foreign currency Issuer Default Rating (IDR) to CCC from B-, and affirmed the Long-term local currency IDR at 'B-'. The Outlook on the Long-term local currency IDR is Negative. The Short-term foreign currency IDR has been downgraded to C from B. The downgrade of Ukrzaliznytsia's foreign currency IDRs and affirmation of its local currency IDR were because its ratings are equalised with those of its sponsor, Ukraine. The rating action followed the one on sovereign credit ratings of Ukraine of Feb 7.
Earlier, this week, the S&P has also downgraded its long-term corporate credit and issue ratings on the State Administration of Railways Transport of Ukraine (Ukrzaliznytsia) to CCC+ from B- with a negative outlook. S&P analysts noted that although its stand-alone credit profile (SACP) of 'b-' is above the foreign currency sovereign credit rating on Ukraine, Ukrzaliznytsia would not pass a stress test because they assess its liquidity as "weak." However, S&P said that it could revise the outlook on Ukrzaliznytsia to stable if it revises the outlook on Ukraine to stable, and if the situation in Ukraine stabilizes and external liquidity pressure on Ukrzaliznytsia eases.