S&P raises Ukrainian Railways rating from CC to CCC following Eurobond coupon redemption in Jan

MOSCOW. Jan 31 (Interfax) - The S&P Global Ratings international rating agency has upgraded the long-term credit rating of Ukrainian Railways and its Eurobonds from CC to CCC after the company redeemed coups of Eurobonds maturing in 2026 and 2028 on January 9 and 15, respectively.

"In January 2025, Ukrainian Railways JSC (UR) paid the coupon on the Eurobonds due in 2026 and 2028, which prevented the company from defaulting on the bonds. [...] Ukrainian Railways ratings raised to CCC- on coupon payments, outlook negative," Ukrainian media said, citing a statement on the S&P website.

UR's immediate default risk has eased after the coupon payments, but not gone away, given significant pressure on the company's liquidity emanating from the crisis in Ukraine and high uncertainties regarding the Ukrainian government's financial capacity to provide further support to UR, it said.

The negative outlook reflects high risks to UR's debt service payments, the statement said.