Improved ratings boost chances of PKP bond issue success

Unexpectedly high assessments by two leading ratings agencies have given a boost to a planned bond issue by Polish State Railways (PKP). Standard&Poor's and Moody's have awarded PKP with a BBB- and Baa3 rating respectively which, Puls Biznesu quotes anonymous insiders as saying, make it possible for the company's planned issue of zl.700 million worth of Eurobonds to go ahead without State guarantees. The agencies' assessments appear to have been based on the fact that, despite massive debts amounting to zl.7.62 billion, PKP's strategic importance means it can always expect help from the government. Even so, the ratings have caused some surprise, given PKP's recent liquidity problems, graphic evidence of which was provided yesterday when TPSA cut off the company's telephones, citing serious delays in paying its bills. (Puls Biznesu, pp. 1, 4, 5) M.K.