S&P downgrades Ukrainian Railways' rating on proposed Eurobond coupon deferral

MOSCOW. Dec 23 (Interfax) - The Standard & Poor's international rating agency has downgraded the rating of JSC Ukrainian Railways to CC from CCC+ with the negative outlook on the proposed deferral of two coupon payments for each respective bond for 12 months since January this year.

"We see a material weakening in UR's debt-repayment capacity, and we think a default on the UR's debt is almost certain as per our methodology. As a result, we lowered our long-term issuer credit rating on UR to 'CC' from 'CCC+'," Ukrainian media said, quoting a statement on the agency website.

The agency said the negative outlook reflected its view that UR is likely to implement its debt restructuring plans in the next few weeks, which S&P considered tantamount to a default.