Fitch confirms default on $1.05B of Ukrzaliznytsia Eurobonds

In the last decade of January, Fitch Ratings downgraded Ukrzaliznytsia’s credit rating to RD (restricted default) and its loan notes (LPN) to D (default), according to the Fitch website.

On January 22, 2026, Fitch recorded a default on $703.2 million of securities maturing in 2026, and on January 27, $351.9 million of securities maturing in 2028.

The company has engaged financial and legal advisors to restructure the debt on both issues. Fitch has stated that Ukrzaliznytsia’s ratings may only be revised after the completion of the restructuring process and a return to timely payments.

Ukrzaliznytsia’s loan notes are issued through a special purpose vehicle, Rail Capital Markets Plc.

• The company has two Eurobond issues: one maturing in July 2026 and one in July 2028. In December 2022, these liabilities were restructured, including a two-year deferral of principal repayment and a rescheduling of coupon payments.
• In December 2024, Ukrzaliznytsia requested another deferral of payments, which was denied. The company subsequently made two coupon payments, the last of which occurred in July 2025. In January 2026, Ukrzaliznytsia announced a suspension of bond servicing to preserve liquidity for ongoing operations.