MOODY'S ASSIGNS A (P)Baa1 RATING TO GUARANTEED NOTES ISSUED BY KAZAKHSTAN TEMIR ZHOLY FINANCE BV; AFFIRMS ALL OTHER RATINGS; OUTLOOK POSITIVE

/REUTERS, April 20, 06/ - Moody's Investors Service has assigned a provisional debt rating of (P)Baa1, to the Senior Unsecured Notes to be issued by Kazakhstan Temir Zholy Finance BV (KTZ BV), a finance company incorporated in the Netherlands and jointly owned by JSC Kazakhstan Temir Zholy (KTZ) (99.64%) and by its subsidiary, JSC Kazzheldortrans ("KZDT") (0,36%). The Notes are guaranteed by KTZ and its main operative subsidiaries KZDT and JSC Lokomotiv ("Lokomotiv") whose activities are to operate, respectively, all freight cars and locomotive fleet of KTZ group. At the same time Moody's has affirmed the Baa3 Foreign Currency Rating and A3 Local Currency Rating assigned to KTZ. The rating outlook remains positive. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction. Upon a conclusive review of the final versions of all the documents and legal opinions, Moody's will endeavor to assign a definitive rating to the transaction. A definitive rating may differ from a provisional rating. The (P) Baa1 rating for KTZ BV's proposed senior unsecured notes has pierced Kazakhstan's country ceiling of Baa3, in accordance with rating methodology for such situation as updated in January 2005. The rating input factors under this methodology are: (1) KTZ's A3 local currency issuer rating; (2) the Baa3 country ceiling; (3) the Kazakhstan 's low moratorium risk; and, (4) a moderately high risk for KTZ as a railways company to be affected by any such moratorium. In accordance with Moody's GRI methodology, the Baa3 Foreign Currency Rating of KTZ reflects the combination of the following inputs: - Baseline credit assessment ("BCA") of 5 (on a scale of 1 to 6, where 1 represents lowest credit risk) - The local currency debt rating of the Government of Kazakhstan of Baa1 with positive outlook - Dependence: Medium - Support: High Based in Astana, City, (Kazakhstan), KTZ is the monopoly operator of the rail network in Kazakhstan and is the country's leading provider of freight services and passenger services. Milan Marco Vetulli Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Frankfurt Michael West Managing Director Corporate Finance Group Moody's Deutschland GmbH JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 [2006-04-20]