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Standard and Poor's affirms MÁV ratings, removes from watch

Standard and Poor's Ratings Services on Wednesday said it affirmed state-owned Hungarian railway company MÁV's 'B+' long-term and 'B' short-term corporate-credit rating and removed the company from CreditWatch.

S&P put the ratings on CreditWatch with development implications on May 27, 2010. The ratings were subsequently withdrawn at the company's request. At the time of the withdrawal, the outlook was developing.

"At the time of the withdrawal, the ratings on MÁV reflected our opinion that despite favorable news about MÁV's receipt of a cost reimbursement from the Hungarian government, there is still a lack of visibility on the government's future strategy for MÁV," said S&P credit analyst Juliana Gallo. "What's more, the implementation of the rail network management contract between MAV and the government, as well as the likelihood of any forthcoming measures to improve the sustainability of MÁV's liquidity position and capital structure, are still pending." (MTI-ECONEWS)