Fitch Ratings assigned Intergas Central Asia's 'BB+' rating, KazTransGas - 'BB', Outlook Stable
02.05.07 15:07
/Fitch Ratings, April 30, 07/ - Fitch Ratings has today assigned Intergas
Central Asia's (ICA) USD250m eurobond maturing in 2011 a senior
unsecured rating of 'BB+' and its upcoming eurobond issue an expected
senior unsecured rating of 'BB+'. A final rating on the new issue will be
assigned once the size, currency and tenor of the bond are decided. ICA
plans to utilise the proceedsto refinance the existing USD400 million bridge
facility and for other corporate purposes.
In addition Fitch has assigned ICA foreign and local currency Issuer Default
ratings (IDR) of 'BB+' and a Short-term foreign currency rating of 'B'. At the
same time, the agency has assigned holding company KazTransGas (KTG)
foreign and local currency IDRs of 'BB' and a Short-term foreign currency
rating of 'B'. The Outlooks on the IDRs are Stable.
The Stable Outlook incorporates the continued strategic importance of ICA
and KTG to the country's gas network transportation and distribution. As
such, Fitch would expect the companies to enjoy continued support from the
state in terms of regulation and tariffs. ICA also plays a key role in the
transportation of gas from Turkmenistan to Russia as Gazprom ('BBB-
/Positive) increases its reliance on natural gas imports from Central Asia to
meet both domestic and specifically export demand.
The 'BB+' IDR for ICA reflects the company's strategic position in the
Kazakh gas transit business and support from its ultimate owner National
Company KazMunayGas. It also takes into account an expected increase in
financial leverage due to ICA's sizeable investment projects. The rating is
based on ICA being the main operating entity and profit centre for the group,
accounting for around 75% of total assets. As such, compared to KTG,
creditors benefit from better direct access to cash flow and tangible assets in
the event of liquidation.
KTG is a holding company that, in addition to ICA, has interests in gas
distribution as well as power and heat. ICA creditors benefit from the large
amount of group assets held in this entity, whilst KTG creditors do not
benefit from direct access to ICA assets. Additionally, ICA's profit margins
and credit metrics are stronger than KTG's. It is for these reasons that KTG's
IDR is one notch lower than ICA's.
ICA is a fully owned subsidiary of KTG and the monopoly operator of gas
transportation pipelines in Kazakhstan. ICA manages the network of gas
pipelines in Kazakhstan on the basis of a 20-year concession agreement
with the government valid until 2017. ICA's total (both domestic and export)
gas transportation volume plan for 2007 is 124.8 bcm.
KTG manages the business of transportation of natural gas through the
main gas pipelines, performs gas trading on domestic and external markets,
and carries out development, financing, construction and gas storage. In
addition, KTG is also responsible for natural gas production and distribution
to the local market as well as the sale of heat and electricity via its Almaty
Power subsidiary.
Contacts:
Jeffrey Woodruff, London, Tel: +44 (0) 207 417 4294;
Arkadiusz Wicik, Warsaw, +48 22 338 6286.
Media Relations:
Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364.
[2007-05-02]