ECONOMY
Standard & Poor`s assigned «ВВ+» credit rating with "Stable" outlook to CJSC Azerbaijani Railways
Baku, June 23 (AZERTAC). Standard & & Poor`s Credit rating agency assigned a long term «ВВ+» credit rating to CJSC Azerbaijani Railways (ADY), national rail network operator of Azerbaijan with 100% state capital. The rating outlook is Stable.
The Agency also announced that ADY`s rating is conditioned by assessment of its own credit profile (SACP) at «bb-» level as well as opinion of great probability that the government of Azerbaijan (ВВВ-/Stable/А-3) will provide timely and adequate emergency support to ADY in stressful financial situation.
Characteristics of the company`s own credit capacity reflect assessment of ADY`s business risks profile as acceptable and financial risk profile as aggressive. ADY`s status of monopoly operator of national rail network operator and good profitability indicators the company have been demonstrating for a long time have positive impact to its acceptable business risk profile. These positive factors are neutralized by high degree of infrastructure and rolling stock deterioration which need upgrade and competitiveness from road and pipeline transport in cargo transportation segment.