CFR Marfa let Moody's lead the way

In November 2007 S&P revised downward CFR Marfa’s rating from “B minus” to CCC on long-term debt, although this was revised upwards again in December to “B minus.”

CFR Marfa could be privatized in 2008, and Transport Minister Ludovic Orban said he hopes to obtain at least €1 billion from this privatization. The €1 million price tag mentioned by Orban is 2.5 times higher than that obtained by the Hungarian authorities for its own goods rail transport company, MAV Cargo.

Deloitte-Bostina and Associates has been chosen to draw up the privatization strategy. The contract is worth €55,000. Following the strategy’s conclusion, the Government will develop a draft ordinance, and an auction will be held to select the consultant. The authorities intend to list some shares on the Bucharest Stock Exchange.

CFR Marfa owns 75 percent of Romania’s railroad goods transport, and its main competitors are Grup Feroviar Roman and Servtrans.

CFR Marfa had turnover last year worth €580 mln, and its share capital is €58.34 mln, owned entirely by the Ministry of Transport.