The FINANCIAL — On November 22, the rating agency “Fitch” has confirmed the JSC “Georgian Railway” rating “B +” and also improved forecasting expectations concerning ratings from “stable” to “positive”, which is largely due to the improvement of Georgia’s sovereign rating forecasts.
“According to the Fitch forecasts during 2018 railway operational indicators have been stabilized, which means that the revenue drop will not occur, and their improvement is expected in 3-5 years.” In his own conclusion report Fitch also points out, that in 2018 the railway will have comfortable limit of free funds”- declares Nino Jorbenadze, Chief of the “Georgian Railway” Corporation Management Department.
According to the press release published by “Fitch”, “Georgian Railway” is an indirect state owned , monopoly, integrated railway company, whose assets are also managed by the “Partnership Fund” (rating: BB- / Positive). According to the release, “Fitch” does not expect a change in the legal status of the company in the medium term.
At the same time, the release notes that to the Association Agreement with the European Union Georgia has an obligation on the reorganization of the railway company structure since 2022. Reorganization by EU standards recommends the separation of railway infrastructure manager from railway operators within a single holding structure.
“Fitch” release also emphasized the importance of “Georgian Railway” in the direction of the country’s transit potential and development of economic ties with the neighboring countries. It is noted that “Georgian Railway”, along with the Azerbaijan Railway, is a key segment of the transport corridor “Europe-Caucasus-Asia”.