Fitch puts Georgian Railways on negative watch

Fitch Ratings said it placed Georgian Railways JSC's long-term foreign- and local-currency issuer default ratings and foreign- and local-currency senior unsecured ratings of BB- on Rating Watch negative.

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

The negative watch reflects the company's under-performing transportation volumes and turnover, which already were under pressure from slowing economies in the region, leading to significantly weaker forecast credit metrics than the rating guidance expected, Fitch explained.

The watch will be resolved once the company’s updated business plan is reviewed for capital expenditure and expected dividends, as well as the strength of the government links in the view of the general elections to be held in October, the agency said.

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