“FSU rail transport companies that are reliant on crude oil transportation are also under competitive pressure as crude oil traffic continues to switch to pipelines from rail,” said the ratings agency.
“Rated rail transport companies are subject to FX [foreign exchange] fluctuations, albeit to varying degree,” Fitch further added.
“A sustained weakening of local currencies could undermine companies` credit metrics. Flat tariff growth in Kazakhstan will put further pressure on JSC National Company Kazakhstan Temir Zholy`s standalone profile,” said the agency.
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