As the Center for the Study of the Transport Corridor of Georgia reports, the credit rating of the Georgian Railway (2015-2020) with the B + indicator is at high risk.
Center President Paata Tsagareishvili told Report.ge, that it is a warning to investors.
He says it means that investing in this company is associated with high risks.
In Tsagareishvili's words, the Georgian Railway's credit rating in 2012-2014 was higher - at the BB level.
Credit ratings of the railways of Russia, Azerbaijan, Kazakhstan, are at the BBB level. Compared to the Georgian Railway rating, they are four steps higher and are characterized by good credit quality.
The Transport Corridor Research Center claims that there is a real risk of lowering the Georgian Railway's credit rating from B + to B.
"As a result of the increase in expenses, the company encountered a liquidity problem," Paata Tsagareishvili said in his Facebook post.
Railway expert David Gochavaclaims the Railway reform is mandatory and irreversible.
"Railway reforms in different countries of the world begin with debt restructuring. A simple question rises: while all governments are helping their leading railway companies overcome the crisis, does the Georgian government help the Georgian Railway? Why does everyone think that the Railway should take care of itself? Take the budget of any year and see what is spent on the development of the railway sector ... and then we wonder why the Railway is in this situation," Gochava told report.ge.
Bela Gelashvili
News Author