KazTransOil (Kazakhstan) says Fitch Ratings upgraded long-term default rating to BBB; outlook Stable
September 2. KASE
KazTransOil (Astana), whose shares are officially listed on Kazakhstan Stock Exchange (KASE), today provided KASE with the following press-release:
On August 28, 2013, the international rating agency Fitch Ratings published the Credit Opinion upgrading JSC KazTransOil’s (KTO) long-term foreign currency Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB-‘. The Outlook is Stable.
The upgrade of KTO is driven by its strong operating and credit profile, which the Agency expects to be maintained at least over the medium term, and its strategic importance to the economy of Kazakhstan (BBB+/Stable). KTO’s ratings are capped by those of its parent JSC National Company KazMunayGas (NC KMG, BBB/Stable). In 2012, KTO became the national operator of oil pipelines in Kazakhstan. It transported 53m tons of oil that year, equivalent to about 1.1m barrels per day (mmbbl/d), and generated KZT61bn (USD410m) in EBITDA. At end-2012, the company had KZT72bn in cash and no balance-sheet debt, and we expect leverage to remain under 0.5x in 2013- 2017.
The rating actions are as follows:
Long-Term IDR: upgraded to ‘BBB’ from ‘BBB-‘, Outlook Stable.
Local currency Long-Term IDR: assigned at ‘BBB’, Outlook Stable.
Short-Term IDR: affirmed at ‘F3’.
National Long Term Rating: assigned at ‘AA+(kaz)’, Outlook Stable.
Senior unsecured rating: assigned at ‘BBB’.
National senior unsecured rating: assigned at ‘AA+(kaz)’