PKP Intercity’s financial outlook ‘positive’

Credit rating agency Fitch Ratings has upgraded the long-term financial outlook of Poland state-owned rail operator PKP Intercity (IC) from ‘Stable’ to ‘Positive’.

Fitch said that PKP could have its rating increased within the next two years after the Polish government, which owns 63.8 per cent of the PKP IC, agreed to shoulder 50 per cent of the company’s debts.

By the end of 2014, the government is expected to increase that figure to 60 per cent.

Other improving factors highlighted by Fitch included increased subsidies on public service contracts, which are expected to rise from 2 billion zł to 3.7 billion zł over the next six years, and finalising funding for 20 new high-speed Pendolino trains.

Announcing the improved financial outlook, Fitch reaffirmed PKP IC’s Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB-’ and Long-term local currency IDR at ‘BBB’.

Read the full report here