which said that the company has performed unsatisfactorily, VSK head and MP Yulia Grishina announced on Facbeook. The body intends to appeal to the Cabinet of Ministers to dismiss the company’s acting head, as well as some members of the company’s board.
the agency announced on April 29. The change reflects the company’s weakened liquidity position, according to the agency’s assessments. As of April, Ukrainian Railway’s liquidity coverage ratio, calculated as available undrawn lines of credit and cash/scheduled repayments, was less than 1x. “The company’s immediate liquidity position is insufficient to offset expected repayments of a local bank loan (USD116 million or equivalent UAH 3,225 million) maturing on 30 May. The company’s available immediate liquidity (as of 26 April 2021) is UAH 3,130 million,” according to Fitch.
including a GDP contraction of 4.2% in 2020, ongoing lockdown measures and currency depreciation. “We project the economy to rebound in 2021 with growth of up to 4.1%, but there are material downside risks to our forecasts, given the uncertainty around the duration of the pandemic. Accordingly, UR’s main revenue driver (the freight segment) has been negatively affected in 2020 with significant downside risk to the pace of the recovery in 2021,” Fitch has assessed.
“Any change in Ukrainian Railways’ tariff policy that leads to an effective increase of cargo rates usually meets fierce resistance from large business customers (especially top customers, the companies related to Rinat Akhmetov like Metinvest and DTEK) this means that the likelihood of the company’s changing its tariff policy is not high.”