Standard & Poor’s Ratings Services said yesterday that it had revised its outlook on Russian state-owned monopoly railroad infrastructure provider Russian Railways JSC (RZD) to negative from stable. At the same time, S&P affirmed the ‘BBB’ long-term corporate credit ratings and the ‘ruAAA’ Russia national scale rating on RZD.
“The negative outlook on RZD mirrors the negative outlook on the Russian Federation. The negative outlook on the Russian Federation reflects our view that there is at least a one-in-three chance that we could reassess the risks to Russia’s creditworthiness based on its deteriorating external profile and reduced monetary policy flexibility and, as a result, could lower our ratings on Russia within the next 24 months.”
In addition, S&P Ratings Services revised the outlook on its ‘BBB’ long-term corporate credit rating on Russian long-distance passenger rail operator OJSC Federal Passenger Company (FPC) to negative from stable.