Fitch assigns Azerbaijan Railways long-term issuer default rating of 'BBB-'

Azerbaijan, Baku, June 19 / Trend, A.Akhundov / Fitch Ratings has assigned Azerbaycan Demir Yollari (Azerbaijan Railways Closed Joint Stock Company; ADY) a Long-term Issuer Default Rating of 'BBB-', the agency's press release says on Tuesday. The Outlook is Stable. ADY's rating is aligned with that of Azerbaijan ('BBB-'/Stable), its 100% shareholder. Fitch's assessment considers ADY's high strategic importance to the national economy, including its position in transport of export-bound oil and oil products as well as freight transit. Legally, Fitch anticipates that ADY will remain 100% state owned in the foreseeable future, but notes that ADY's debt is not guaranteed by the government. The debt level is relatively modest (AZN227m at YE11), but Fitch does not anticipate any increase in the coming years. The agency believes that ADY's business may benefit from the modernisation of the South-North corridor from Iran to Russia, as well as launch of Baku-Tbilisi-Kars railway. The official exchange rate is 0.7858 manat to $1 on June 19. Do you have any feedback? Contact our journalist at agency@trend.az