S&P Global Ratings lowered its long-term corporate rating on Georgia's national railway operator, JSC Georgian Railway (GR), to 'B+' from 'BB-', Trend reports. The outlook is stable.
S&P affirmed the short-term rating on GR at 'B'.
At the same time, S&P lowered rating on GR's senior unsecured bonds to 'B+' from 'BB-'.
The rating action primarily reflects S&P’s assessment that the financial leverage at Georgian Railways has increased as a result of the decline in freight volumes in the first half of 2016, and will recover to previous levels in the next 12-24 months.
S&P estimates that in the first eight months of 2016, GR has lost up to 47 percent of oil product turnovers, one of its most profitable cargo types.
