S&P Assigns ‘BB’ Rating To KazMunaiGas Proposed Bonds
The International Rating Agency S&P Global Ratings assigned its ‘BB’ long-term issue rating to proposed bonds to be issued by Kazakhstan-government-controlled vertically integrated oil company KazMunaiGas, S&P said in a message April 12.
KazMunaiGas plans to issue the proposed bonds directly within the framework of its $10.5 billion notes program.
“The issue rating on this debt mirrors our long-term corporate credit rating on KazMunaiGas. We estimate that the group’s structurally and contractually priority debt (that is, secured debt and debt at cash-generating subsidiaries) is below 15 percent of the group’s net assets, as most of the debt is currently unsecured and at the parent level,” the rating agency said.
According to S&P, the group intends to use the proceeds for general corporate purposes, including the refinancing of existing debt.
KMG is a 100 percent government-owned national oil company with stakes in essentially all of Kazakhstan’s oil-related assets and priority access to new assets.