Network Rail says profits down and seeks debt rating

LONDON (Reuters) - Network Rail said on Thursday its pretax profits fell 10 percent in the six months to end September to 706 million pounds, and that it was seeking a debt rating in the new year.

The state-backed company, said in a statement punctuality was higher than ever before at 92 percent, but that maintenance and track renewal performance had fallen short of target.

The Office of Rail Regulation (ORR) said last month Network Rail could receive 27.7 billion pounds over the next five years to improve the country's railways, but the operator said it could not accept the ruling until it had a debt rating.

"The company needs to attain an appropriate investment grade from the ratings agencies to allow it to commence a stand alone debt programme," it said in the statement.

Network Rail debt has risen slightly to nearly 20.5 billion pounds since March.

The firm took over the running of Britain's railways following the collapse of Railtrack Plc in 2002. Part funded by government subsidies, it must reinvest all profits in the network or reduce debt.

(Reporting by John Bowker)