S&P cuts Hungarian State Railways

Standard & Poor's said it lowered its long-term corporate credit rating on Hungarian State Railways Co. Ltd. to B+ from BB, and revised the CreditWatch implications on the company to developing from negative. The short-term rating remains at B.

The downgrade follows the downward revision of the company's stand-alone credit profile to CCC+ from the B category, and its weak liquidity situation on a stand-alone basis, S&P said.

The ratings reflect the high likelihood that the Republic of Hungary would provide timely and sufficient extraordinary support to the company in the event of financial distress, the agency said.

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