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Fitch Downgrades Ukrzaliznytsia to ‘CCC’

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’.

Fitch has also downgraded Shortline Plc’s loan participation notes’ Long-term foreign currency rating to ‘CCC’ from ‘B-‘. A full list of rating actions is below.

The rating actions follow the downgrade of Ukraine’s Long-term foreign currency IDR to ‘CCC’ from ‘B-‘ and affirmation of its Long-term local currency IDR at ‘B-‘ (see Fitch Downgrades Ukraine to ‘CCC’ dated 7 February 2014 at www.fitchratings.com).

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. Fitch uses its public-sector entities (PSE) rating criteria and views Ukrzaliznytsia as a dependent PSE.

The downgrade of Shortline Plc’s USD500m loan participation notes’ (LPN) rating reflects that their rating is equalised with Ukrzaliznytsia’s Long-term foreign currency IDR as Ukrzaliznytsia is a guarantor of Shortline Plc’s LPN (see ‘Fitch Assigns Shortline Plc’s LPNs Final ‘B-‘ Rating’ dated 20 May 2013 at www.fitchratings.com).

Fitch expects to publish a further rating action commentary in the near future summarising public finance Ukrainian National Scale ratings.

A credit analysis on UZ is available at www.fitchratings.com

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