OREANDA-NEWS. January 20, 2010. The international rating agency Moody’s confirmed the Baa1 rating of Russian Railways and the Company’s current rating of Aaa.ru on the Russian national scale. The agency has also raised the Company’s outlook from stable to negative, reported the press-centre of Russian Railways.

The improved outlook reflects the increased confidence of Moody’s analysts that the government’s support programme to the rail industry has to a large extent mitigated the negative effects of the crisis, such as reduced freight volumes, on Russia’s economy.

Moody’s notes the success of the Company’s management in adapting its investment programme to the new market conditions and its effective policy to reduce costs, optimise debt and increase liquidity.

In 2009, Russian Railways reduced its investment programme by 30% or 176 billion roubles, while cost-cutting measures enabled the Company to save another 188 billion roubles.

Moody’s analysts also highlighted the range of government measures aimed at reducing the impact of the recession on Russian Railways, in particular its well-thought out decisions regarding tariffs and subsidies, the financing of special investment projects and compensatory payments.