Moody’s affirms SNCF Mobilites

Moody’s Investors Service said it affirmed the Aa3 long term issuer rating of SNCF Mobilites, the Aa3 senior unsecured rating and the P-1 commercial paper rating following the railway reform that was approved by the French government on June 14.

The outlook is stable.

The agency said the affirmation reflects a belief that the perceived level of government support remains high, despite the agency's decision to reduce it from very high to high as the recent railway reform changed the company's legal status.

With this change, SNCF Mobilites will no longer benefit from explicit government support in case of need. However, Moody's said it expects that the government will continue to support SNCF Mobilites, which will remain 100% owned by the state through SNCF Holding SA and its shares will be non-transferable or non-sellable.

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