Agency reports that Fitch Ratings international rating agency has certified long-term issuer default rating (IDR) in foreign currency of JSC “KazTransGas” and 100% of its subsidiary companies, JSC “Intergas Central Asia” and JSC “KazTransGas Aimak” on “BBB-” level.

A long-term IDR of companies in national currency increased from “BBB-” to “BBB”, a short-term IDR in foreign currency is certified as “F3”.

In addition the national long-term rating increased from “AA (kaz)” to “AA+ (kaz)”, a long-term rating of priority debenture debt certified at “BBB-”.

The national long-term priority unsecured rating increased from “AA(kaz)” to “AA+(kaz)”.

Forecast of ratings – “stable”.

It was reported that the increase of long-term IDR in national currency KTG, ICA and “KTG Aimak” to “BBB” level was carried out for better presentation of connection between KTG and its maternal structure and NC “KazMunaiGas”
 (“KMG”) which long-term IDR in national currency is higher to one level than IDR in foreign currency.

National long-term ratings and national priority unsecured ratings of KTG, ICA and “KTG Aimak” were also increased from “AA(kaz)” to “AA+(kaz)” to represent the increase of long-term IDR in national currency.

Ratings of “KTG” are lower to one level than ratings of “KazMunaiGas”.

Fitch rated intergroup connections between KTG, ICA and “KTG Aimak” as strong therefore ratings of two subsidiary companies are at the level as KTG’s – “BBB-”.

The agency expects the reduction of annual capital expenditures of KTG to 60 bln tenge in 2017 and 50 bln tenge in 2018. Fitch does not predict strong effect on credit solvency of KTG on the part of potential investments for termination of the construction of “Beineu-Bozoi-Shymkent” pipeline and “C” line of the pipeline from Central Asia and China financed by joint venture of KTG with China National Petroleum Corporation (CNPC) and guaranteed by CNPC and KMG without resource to KTG.

As evaluated by Fitch devaluation of national currency was neutral for leverage indexes this year as high leverage in terms of a debt in USD will be graded by additional EBITDA, because the main part of income of ICA and KTG is pegged to the dollar while other expenses are pegged to the tenge.

Fitch preserves binding of ratings of “KTG Aimak” to ratings of KTG.
Ratings of “KazTransGas” can increase in case of increase of ratings of “KMG” – the evidence of stronger connections between KMG and KTG.

Ratings of KTG may decrease in case of decrease of ratings of the parent company – the evidence of loss of connections.

JSC “KazTransGas” is the national operator of gas supply, a member of the structure of “KazMunaiGas”.

JSC “Intergas Central Asia” was founded in 1997. Company manages the gas transmission system of Kazakhstan and is a member of the group of companies JSC “KazTransGas” (a subsidiary company of NC “KazMunaiGas”). Company operates seven main pipelines with mileage of 14K km.

JSC “KazTransAimak” was founded in 2002. Sole shareholder is JSC “KazTransGas”. Company deals with has transportation in gas distribution networks, accident-free and continuous gas supply of the population, household-municipal, industrial enterprises and infrastructure management. 

Official exchange rate as of April 21 – 337.14 tenge per 1$.

Source – “Interfax-Kazakhstan” information agency