Moody's assigned "A3" long-term rating to Kazakhstan Temir Zholy

/REUTERS, New York, July 13, 05/ - Moody's Investors Service has today assigned a local currency long-term issuer rating of A3 to Joint Stock Company Kazakhstan Temir Zholy ("KTZ") with a positive outlook. KTZ's foreign currency rating of Baa3 with a positive outlook remains unchanged. Under the new rating methodology for government related issuers ("GRIs") which was introduced in June 2005, the rating incorporates a Baseline Credit Assessment of 5, high support by the Kazakhstan government, medium dependence and a domestic currency rating for Kazakhstan of Baa1 with a positive outlook. The A3 local currency rating is a measure of the credit performance of obligations denominated in the local currency and therefore excludes the transfer risk relevant for foreign-currency obligations. In contrast, the Baa3 foreign currency rating incorporates a measure of the likelihood that the Kazakhstan government would impose restrictions on the repayment of foreign-currency-denominated obligations. KTZ has no bonds rated at this time. In certain circumstances, Moody's rates bonds issued under foreign law in a foreign currency above the country's foreign currency country ceiling. Such an approach would apply to bonds issued by KTZ. For a detailed discussion of our rating methodology for GRIs, please refer to the Rating Methodology entitled "The Application of Joint Default Analysis to Government Related Issuers" (April 2005), as well as the Special Comment entitled "Rating Government-Related Issuers in European Corporate Finance", and its accompanying Addendum (June 2005). For more details on the application of a foreign-currency country ceiling to the rating process, please refer to Moody's Special Comment "Piercing the Country Ceiling: An Update" (January 2005). Headquartered in Astana City, Kazakhstan, Kazakhstan Temir Zholy is an integrated provider of rail services to the Kazakhstani market. The company is the monopoly owner and operator of the country's rail infrastructure and offers cargo and passenger transport services through its substantial fleet of locomotives and rolling stock. The company has approximately 95,000 employees and recorded revenues of Tenge 206 billion (US$ 1.5 billion) in 2003. [2005-07-14]