Skip to content. | Skip to navigation

Personal tools
You are here: Home Breaking news S&P cuts rating on French SNCF rail company debt

S&P cuts rating on French SNCF rail company debt

04 June 2010, 18:55 CET
— filed under: , , , , , ,

(PARIS) - Standard & Poor's said on Friday it had downgraded debt held by French rail operator SNCF because European Union regulations could impose constraints on future state aid to the company.

The ratings agency said it had lowered its assessment on SNCF to AA+ from AAA.

"We believe that SNCF's most profitable core rail businesses will gradually become exposed to competition," S & P said.

"In addition we believe that EU rules may place increasing constraints on any potential government support for SNCF that is not based on a pure financial rationale."

The EU's executive commission in mid-February sent a letter to the French government expressing the view that the statute governing the SNCF could "lead to an unlimited financial guarantee of (the company's) debts," which it said was "contrary to European competition regulations."

Some experts say that hitherto, in view of the state guarantee, credit rating agencies equated debt issued by the SNCF to debt issued by the French state.


Text and Picture Copyright 2010 AFP. All other Copyright 2010 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.

Document Actions

EUbusiness Week no. 657
MEPs approve banking union - email summary of the past week's EU business news
→ EUbusiness Week archive

The Week Ahead no. 219 Subscribers only
Fruit & vegetables - milk quotas - basic bank accounts - reducing plastic bag use.
→ Week Ahead past newswires

Subscription options

Subscription options