S&P cuts Georgian Railway view to negative

S&P said it revised its outlook on Georgia's national railway operator, JSC Georgian Railway, to negative from stable and affirmed the long- and short-term ratings at B+/B.

S&P also affirmed its B+ issue rating on Georgian Railway's senior unsecured bonds.

The outlook revision to negative means that we could downgrade Georgian Railway if the group's leverage continues to increase beyond S&P’s current forecast, driven by lower freight volumes or lower tariffs, and results in much weaker cash flow generation and the coverage of its interest expense by cash flows, S&P said in a news release.

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