Fitch Downgrades Ukrzaliznytsia's FC IDR to 'CC'; Affirms LC IDR at 'CCC'
Fitch has also downgraded the Long-term foreign currency rating on Shortline Plc's USD500m loan participation notes (LPNs) - for which Ukrzaliznytsia is a guarantor - to 'CC' from 'CCC'. A full list of rating actions is at the end of this rating action commentary.
The rating actions follow Fitch's recent downgrade of Ukraine's Long-term foreign currency IDR to 'CC' from 'CCC' and the affirmation of the sovereign's Long-term local currency IDR at 'CCC'. The Country Ceiling was affirmed at 'CCC' (see 'Fitch Downgrades Ukraine's FC IDR to 'CC'; Affirms LC IDR at 'CCC' dated 13 February 2015 at www.fitchratings.com).
KEY RATING DRIVERS
Ukrzaliznytsia's IDRs are equalised with those of its sponsor, Ukraine. In line with Fitch's public-sector entities (PSE) rating criteria, the agency views Ukrzaliznytsia as a dependent PSE.
The rating on Shortline Plc's LPNs is equalised with Ukrzaliznytsia's Long-term foreign currency IDR (see 'Fitch Assigns Shortline Plc's LPNs Final 'B-' Rating' dated 20 May 2013 at www.fitchratings.com).
Any rating action on Ukraine would lead to a similar rating action on Ukrzaliznytsia.
Shortline Plc's notes' rating will move in tandem with Ukrzaliznytsia's Long-term foreign currency IDR.
The rating actions are as follows:
State Administration of Railways Transport of Ukraine
Long-term foreign currency IDR downgraded to 'CC' from 'CCC'
Long-term local currency IDR affirmed at 'CCC'
Short-term foreign currency IDR affirmed at 'C'
USD500m LPNs' (ISIN XS0934134312, US825262AA68) Long-term foreign currency rating downgraded to 'CC' from 'CCC'