: :inin Kyiv (EET)

Fitch affirms Ukrainian Railway at `CCC`

Fitch Ratings has affirmed Ukrainian Railway`s Long-Term Foreign Currency Issuer Default Rating (IDR) at `CCC`, Fitch Ratings said in its press release.

Long-Term Local Currency IDR at `RD`, Short-Term Foreign Currency IDR at `C` and National Long-Term rating at `RD(ukr)`, according to Fitch.

The Long-term foreign currency rating on Shortline Plc`s USD500 million loan participation notes (LPNs) has also affirmed at `CCC`.

Fitch views Ukrainian Railway as a credit-linked entity under its ”Rating of Public-Sector Entities Criteria”, reflecting the entity`s 100% state ownership, strong legal linkage with the state, strategically important role as the largest natural monopoly and tight state control over company`s operations. Ukrainian Railway`s ratings are one notch below the Ukraine`s sovereign ratings (B-/Stable), which reflects mid-range integration with government finance evidenced by reduced state support over last few years.

The `Restricted Default` Local Currency IDR and National Long-Term rating reflect a failure to make principal payments under certain bilateral loan agreements with Ukrainian lenders and that the company is currently restructuring these domestic liabilities.

Shortline Plc`s notes` rating is equalized with Ukrainian Railway`s Long-Term Foreign Currency IDR, reflecting Fitch`s view that the notes constitute direct, unconditional senior unsecured obligations of Ukrainian Railway and rank pari passu with all its other present and future unsecured and unsubordinated obligations.


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