Downgraded Credit Rating of Azerbaijan Railways

The long-term credit rating of JSC Azerbaijani Railways (AR) has been changed from BB + to BB- with a "negative" outlook.

According to the analytical information of the rating service of Standard & Poor`s, assessment of financial stability in the future will be reviewed.

The results were affected by the fact that AR admitted in late November a three-day delay in the payment of an international credit as a result of red tape. Now the connection of the company with the government is rated as "strong" and not "very strong", as it was before. As a consequence of the delay of payment on the loan, evaluation of the provision of timely and emergency care by the government also changed from "very high" to "high".

The railway monopolist is very important for the government, however, the November incident was a wake-up call - the agency intends to revise its rating with the probability of a downgrade as much as two points - to , if the system of government oversight of the AR is not improved.

The rating is to be reviseed in 3 months, during which the Agency will monitor the level of support of AR by the government. --17D-