One of the leading international rating agencies Standard & Poor's upgraded the long-term credit rating of JSC “Ukrainian Railways” to B- from CCC.
According to Ivan Yuryk, Acting Chairman of the Management Board of JSC “Ukrainian Railways”, this increase was the result of the active implementation of the company's anti-crisis program and the recent successful completion of the financial debt restructuring process to Sberbank (Ukraine), which had a positive impact on the company's liquidity and allows to maintain sufficient level of current expenditures.
"In a difficult period for most companies, Ukrainian Railways' ability to meet its commitments adds confidence to investors in its stability and creditworthiness. The S&P decision is another confirmation of that", — Ivan Yuruk said.
In its statement, Standard & Poor's noted that the rating action reflects the reduction of the debt burden on liquidity in the current period after Ukrainian Railways signed debt restructuring agreements with the bank. Given the negative impact of the pandemic on financial markets, Ukrainian Railways took the necessary steps and agreed with the bank to defer debt repayment for up to three years with the possibility of early debt repayment.
At the same time, the "negative" outlook of the rating reflects the uncertainty regarding the external environment in which Ukrainian Railways and other companies are located, as well as the potential risks associated with it.
"One of the priorities of stable work of Ukrainian Railways is transparent and stable relations with domestic and international partners, including stable fulfillment of obligations. I am confident that we will go through the times of the financial crisis, and the Ukrainian Railways anti-crisis program will become a model for other companies", — Ivan Yuryk summed up.