CFR Marfa looking for private investors to modernize

"This week we will sign the contract to establish the first company, which is to be named Rolling Stock," Liviu Bobar, General Manager of CFR Marfa, told Business Standard. He added that Grup Feroviar Roman and Raiffeisen Bank will invest in this first company.  Bobar declined to provide details regarding the amount to be invested to modernize the cars, but according to sources on the market, the two private companies will together invest some €60-80 million.

At the beginning of this week, the Standard & Poor’s (S&P) rating agency revised downward its rating for CFR Marfa, to "CCC" from "B minus", due to the company's long-term debts. The agency indicated that the rating highlights the vulnerability of CFR Marfa in terms of liquidity, aggressive financial policy, fierce competition in the Romanian transportation sector, and the company's inflexible cost structure, increasing operational risk.

"S&P has revised the rating downward because we have not yet signed the agreement with Raiffeisen Bank for the €120 million loan. We will sign this contract on 21 November, and the rating should be revised upward," Bobar explained.