Fitch Ratings has affirmed JSC Georgian Railway's (GR) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) 'BB-'. The Outlook is Stable.
According to the document, the affirmation reflects Fitch's unchanged strong expectation of extraordinary support from Georgia (BB/Stable). Combined with GR's Standalone Credit Profile (SCP) of 'b+', this leads to a single-notch differential between GR's IDRs and Georgia's sovereign IDRs.
GR's financial profile remains commensurate with its SCP of 'b+' under Fitch's Public Policy Revenue-Supported Entities Criteria. The ratings also factor in Fitch's 'Strong expectations' of extraordinary support from the state in case of need as the agency considers GR a government-related entity (GRE) linked to the Georgian sovereign under its GRE criteria.
The combination of Fitch's assessment of the probability of extraordinary support from the sovereign to the company and its SCP leads to a one-notch uplift from the company's SCP to the 'BB-' IDR.
