OREANDA-NEWS. Fitch Ratings says in a new report that transport companies in the former Soviet Union (FSU) countries face negative rating pressure from the effects of a continued decline in freight transportation volumes and local currency weakness.

Fitch says companies with a significant share of debt denominated in foreign currencies, such as FESCO (B/Stable), Lemtrans and KTZ (BBB/Stable) are exposed to local currency depreciation due to a mismatch between their debt and earnings or lack of hedging. The impact could be worsened by a potential increase in interest rates in the domestic debt markets and inflationary pressures.

The 2H14 FSU Transportation Dashboard is available at www.fitchratings.com or by clicking the link above.