Moody’s changes SR to positive

Moody's Investors Service said it revised the outlook on the A2 issuer rating of SR Co., Ltd. to positive from stable and affirmed the A2 issuer rating.

"The change in outlook reflects SR's outperforming operations and credit metrics relative to Moody's rating expectation, mainly due to higher fare-based revenue stemming from the longer average distances traveled by its passengers, on top of growing average daily passengers," Mic Kang, Moody's vice president and senior analyst, said in a news release.

The agency said it expects SR's annual average daily passengers to reach a sustainable level of 55,000-57,000 over the next six to 12 months from around 53,000 in 2017.

Moody’s said the expectation is based on the continued uptrend in daily passenger numbers throughout 2017 and the first quarter of 2018, and the smooth transition of its new railway operations to a fully operational stage from the ramp-up period since its commencement of operations in December 2016.

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