S&P suspends rating of Azerbaijan Railways

Economy Materials 31 July 2015 19:44 (UTC +04:00)

Baku, Azerbaijan, July 31

By Azad Hasanli - Trend:

Standard & Poor's Ratings Services suspended its 'BB+' long-term corporate credit rating on state-owned railway operator Azerbaijan Railways CJSC (ADY), said the message posted July 31 on the website of the agency.

The rating is suspended because of a lack of information from the company on its financial and operating performances and prospects, as well as the company's operational volumes, tariffs, capital expenditures, and cost information for the first half of 2015, and on the details of its financial forecasts for the next two years (assumed tariffs, volumes, and investment projects).

"If the company provides us with sufficient information on its performances, we could reinstate the ratings," said the message. "We also need further updates on ADY's current liquidity position. We will consider withdrawing the ratings if we do not receive the above-mentioned information within 90 days."

The suspension does not imply that ADY is not servicing its obligations. Should sufficiently detailed information become available, Standard & Poor's will reconsider an appropriate rating.

Azerbaijan Railways CJSC (ADY) is 100 percent owned by the state.