Russian Railways assigned highest rating by Analytical Credit Rating Agency
The Analytical Credit Rating Agency (ACRA) has assigned Russian Railways a maximum AAA credit rating (RU) with a stable outlook and an AAA (RU) credit rating on all current local bond issues.
The rating reflects the assessment at the level of financial obligations of the Russian government, which is due to the high systemic importance of Russian Railways for the Russian economy and the Company’s integral relationship with the state.
Among the significant factors that influenced the assessment, the Agency also noted the Company’s strong industry profile, which is supported by its monopoly position, the stability of the Company's business segment with its high profitability on operations and a moderate level of debt supported by the Company’s high level of liquidity.
In addition, the Company’s level of corporate governance, including the existing system of financial risk management, received a positive assessment.
Russian Railways has also been assigned credit ratings by the international rating agencies Standard & Poor's, Moody's and Fitch.
The ratings are correlated with the sovereign rating of the Russian Federation and are at BB+/Ba1/BBB- with a "positive" outlook from Standard & Poor's and Fitch and "stable" from Moody's.