Fitch affirmed the ratings of the company KazTransGas at BB and the ratings of Intergas Central Asia at BB+, the forecast - stable

/IRBIS, September 17, 2010/ - Fitch Ratings affirmed the ratings of the company KazTransGas (CTG): long-term issuer default ratings (IDR) in foreign and local currency ratings "BB" and Short-term "B". The outlook on the long-term IDR - "Stable", indicated to Fitch on Sept. 16. At the same time the agency affirmed the ratings of JSC Intergas Central Asia (ICA): Long-term IDR and foreign currency "BB +", its senior unsecured rating of "BB +" and Short-term "B". The outlook on the long-term IDR - Stable. Ratings of Senior Unsecured Notes Intergas Finance BV also affirmed at "BB +". As stated, the ratings of the CTG, the ultimate owner of which is the state, and its 100 percent subsidiary of AIC reflect the position of the AIC as the monopoly operator of gas pipeline network in Kazakhstan, remains the only route that can take the transit gas from Central Asia to Russia and Europe . The ratings are supported by improved performance of credit. In 2009 and first half of 2010, Gazprom, the main contractor CTG and ICA, which accounted for about 90% of the proceeds of the ICA in 2009, fulfilled its obligations "pump or pay" (ship-or-pay) under contract with ICA for the transit of Central Asian gas (which provides the bulk of revenues), despite the much lower actual volumes of Turkmen gas purchased by Gazprom. The ratings and Stable Outlook on the ratings also reflect the expectations Fitch, which both companies will maintain a sufficiently strong financial performance in 2011, although weaker than in 2009-2010, when the contract (which expires at the end of 2010) will be renewed on less favorable terms for the CTG / ICA. It is expected that the financial performance of the CTG also improved through increased activity in sales of gas purchased from other domestic producers, with an attractive economic return. "Forecasts of Fitch's CTG and ICA are based on assumptions the agency's continued international transit fees for gas in 2011-2014 years. And exclusion conditions for the transfer or pay from a new agreement with Gazprom on gas transit from Central Asia. Fitch expects that the ratio of adjusted debt to funds from operations (FFO) in the CTG / ICA exceed 2x in 2011, while companies continue to have a good position among comparable pipeline companies rated by Fitch ", - stated in the message. AIC ratings are one level higher rating CTG, since ICA is the basic operating structure and profit center groups. ICA (2009: adjusted ratio of debt to cash flows from operating activities in the 1.46, margin EBITDAR 63.4%) has a stronger credit metrics than CTG (1.61, and 47.9% respectively). As stated, the ratings also reflect the intense capital program in the CTG / ICA, which may require additional external funding, thus putting pressure on the leverage upward. "Despite some stabilization of the Kazakh banking system, Fitch continues to focus more on overall performance rather than pure leverage in their analysis, since a significant proportion of the money placed in the position of Kazakh banks," - it's stated in the message. [2010-09-17]