OREANDA-NEWS. Fitch Ratings has today affirmed Joint Stock Company Russian Railways' ("RZD") foreign currency Issuer Default rating at 'BBB+' with a Stable Outlook. Its senior unsecured and Short-term ratings are also affirmed at 'BBB+' and 'F2' respectively.

The National senior unsecured rating of 'AAA(rus)' is also affirmed.

RZD's ratings reflect its close connections with the Russian Federation (rated 'BBB+'/Stable) and its standalone, sustainable, profitable financial profile.

The Russian Federation is the direct owner of RZD with government representation on the board, which thereby approves its budgets, capital expenditure and hence its revenue requirements. Under statute, there is also a requirement that the core infrastructure operations should remain under state ownership. RZD is of strategic significance to Russia's economy given the coverage of RZD's infrastructure on the country's vast terrain and the significance of oil - a commodity transported by RZD.