Rail Company Kazakhstan Temir Zholy Assigned "kzAA-" Kazakhstan National Scale Rating - S&P
22.06.05 11:08
/Standard & Poor's, Moscow, June 22, 05/ - Standard & Poor's Ratings
Services said today it assigned its 'kzAA-' Kazakhstan national scale rating to
rail company Kazakhstan Temir Zholy (KTZ). The 'BB+' global scale rating
with a stable outlook on the company is unaffected.
The ratings on KTZ reflect the poor and aged state of its operating assets,
ongoing regulatory risk, the high level of expected capital expenditure, and
the requirement for additional borrowing in the medium term. A further risk is
the increasing contribution to KTZ's cash flows of oil traffic, much of which
is expected to transfer to new pipelines.
These risks are offset at this rating level by: KTZ's position as monopoly
railroad infrastructure operator and dominant freight carrier; a strong
intermodal competitive position; good medium-term rail traffic growth
prospects; and KTZ's strategic importance to and support from the
government of Kazakhstan (foreign currency BBB-/Stable/A-3; local currency
BBB/Stable/A-3; Kazakhstan national scale kzAAA).
[2005-06-22]