Standard & Poor's releases annual credit rating review of KazTransOil
/KASE, August 8, 2019/ – KazTransOil (Nur-Sultan), whose shares are officially
listed on the Kazakhstan Stock Exchange (KASE), has provided KASE with the press
release dated August 8, 2019, which states as follows:
The international rating agency, S&P Global Ratings (hereinafter – the Agency),
has published an annual credit rating review of “KazTransOil” JSC (hereinafter –
the Company) within the framework of which its basic scenario was updated. The
Agency predicts stable operating performance and good creditworthiness of the
Company in 2019. The rating by the Agency remains unchanged from the moment of
its increase to the level “BB” with the forecast “Stable” in November 2018.
The Agency notes that the Company maintains a high level of financial flexibility
due to its significant market share, good competitive position, lack of debt at
the company level, as well as adequate cash management that allows generating
positive cash liquidity to pay dividends and ensure all existing investment
projects of the Company.
In addition, the current rating of the Company is still limited by the rating of
the parent structure - “NC “KazMunayGas” JSC (hereinafter – KMG) (“BB”, with the
forecast “Stable”), even though the Agency assesses Company’s creditworthiness
at the level of “bb+”. The Company cannot be protected from the risks associated
with its belonging to the KMG group; therefore, the Agency does not assign a
subsidiary company a rating higher than the level of the parent structure.
The Agency informs that a positive action with respect to the Company's rating
is possible in case of a similar rating action with respect to KMG.