Fitch lifts Georgian Railway

Fitch Ratings said it upgraded Georgian Railway LLC's long-term foreign- and local-currency issuer default ratings to BB- from B+ and its foreign- and local-currency senior unsecured ratings to BB- from B+/RR4 and $250 million notes due 2015 to BB- from B+/RR4.

The short-term foreign- and local-currency issuer default ratings were affirmed at B.

The outlook on the long-term issuer default ratings is stable.

The action follows the upgrade of Georgia's long-term foreign- and local-currency issuer default ratings to BB- from B+, according to the agency.

The railway's issuer default ratings have been aligned with Georgia's sovereign ratings (BB-/stable/B), Fitch noted, which reflects the company's 100% direct and indirect ownership by the government, its importance to the economy as the largest taxpayer and employer, its dominance of Georgia's freight transportation sector, its strategic importance as the regional transit corridor and government backing for its two key investment projects.

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