...Stable Outlook in Europe: The sector and rating outlook for the rail transport sector is stable in Europe as demand is good. Operating cost drivers are expected to improve as lower oil prices flow through P&L and internally generated cash flows are in balance with plans for capex and shareholder returns. Negative Outlook in FSU: The sector and rating outlook for the rail transport sector in the former Soviet Union (FSU) countries has been revised to negative. This reflects continued weak market fundamentals putting pressure on freight transportation volumes and rates as well as local currencies' weakness. The impact of the latter differs depending on companies' funding strategies and applied tariffs. Limited Credit Metrics Headroom: The majority of rated transport companies in the FSU region have pursued conservative credit policies compared with international peers, which should help them survive the challenging market conditions. We expect the financial profiles of most rated companies...
