Fitch Ratings changes Kazakhstan Temir Zholy's outlook to "Negative"

/Fitch Ratings, London/Moscow, December 17, 07/ - Fitch Ratings has today changed the Outlook for Kazakhstan Temir Zholy's (KTZ) Long-term foreign currency Issuer Default rating (IDR) to Negative from Stable. In addition, Fitch has affirmed KTZ's Long-term foreign currency IDR and senior unsecured ratings at 'BBB'. Its Short-term IDR is affirmed at 'F3'. The change in Outlook results from today's change in the Republic of Kazakhstan's Long-term foreign currency IDR to Negative from Stable. Its Long-term foreign currency and Short-term IDRs are affirmed at 'BBB' and F3', respectively. The ratings of KTZ reflect its links with the state, including the strategic nature of Kazakhstan's rail infrastructure to its economy, particularly given the country's terrain and importance of the commodities (oil, coal and ore) transported. The ratings also acknowledge the government's intention to retain the rail infrastructure assets and activities within KTZ despite the on- going reform process - a parliament vote is required to change this requirement to own the rail infrastructure assets. In addition, the ratings consider the government's 100%-ownership of KTZ and its strong representation on the group's board, its involvement in the group's finances given the state's (the anti-monopoly agency's) role in setting tariffs and past supportive statements from government representatives towards KTZ Contacts: John Hatton, London, tel.: +44 20 7417 4283 Valentina Goryunova, Moscow, tel.: +7 495 956 9901 Contacts for mass media: Alla Izmaylova, Moscow, tel.: + 7 495 956 9901/9903, alla.izmailova@fitchratings.com [2007-12-19]