Polish railways PKP affirmed at BBB - Fitch
August 18, 2014
Fitch Ratings has affirmed Polskie Koleje Panstwowe S.A. (PKP) Long-term foreign and local currency Issuer Default Ratings (IDR) at 'BBB' and 'BBB+' with stable outlooks, the agency said in a statement.
The rating affirmation reflects PKP's strong legal links with the State, including state guarantees for a substantial part of the company's debt, and cash inflows from the State supporting the company's weak standalone credit profile, the statement said.
Ratings are also supported by substantial deleveraging over the past 12 months as well as by available liquidity for upcoming debt repayments in 2H14 and 2015, due to proceeds from the sale of stakes in some PKP's subsidiaries in 2013 and in 1H14, the agency said.