Moody's has downgraded railcar operator Brunswick Rail Limited's

Moody's Investors Service has downgraded Russian railcar operator Brunswick Rail Limited's (BRL) corporate family and probability of default ratings to Ca from Caa3 and to Ca-PD from Caa3-PD, respectively. Consequently, Moody's has downgraded to Ca from Caa3 the senior unsecured rating of the $600 million 2017 notes issued by Brunswick Rail Finance Limited and guaranteed by BRL. The outlook on all ratings is negative. "We downgraded BRL's ratings because its ability to generate cash in the coming 12 to 18 months will likely deteriorate further as market weakness persists and railcar lease rates drop. BRI's confirmation that it is considering debt restructuring, an action we consider a default, also factors into today's downgrade," said Julia Pribytkova, a Moody's Vice President -- Senior Analyst.

• Full name
  Brunswick Rail Ltd
• Registration country
  Russia
• Industry
  Transportation