S&P Report Says Kazakh Superholding, Samruk, Won't Affect Ratings On State-Owned Companies
27.06.06 16:55
/Standard & Poor's, Moscow, June 27, 06/ - Standard & Poor's Ratings
Services does not expect the Kazakh government's establishment of the fully
owned state superholding Samruk to have any immediate effect on the credit
quality of the rated state-controlled companies to be transferred to its
control, according to a report published today on RatingsDirect titled
"Kazakhstan's Samruk Superholding And Its Implications For State-Owned
Companies."
""The proposed arm's-length holding-company structure is unlikely to result
in additional government support to state-owned companies or affect the
existing level of support and the way such support is provided," said
Standard & Poor's credit analyst Eugene Korovin."
Samruk's involvement in the management of the companies may, however,
extend beyond the declared scope of improving efficiency and increasing
market capitalization. New investments are likely to be funded through
borrowing at the level of the holding company, which may consequently rely
on higher dividends from the subsidiaries, resulting in a convergence in
credit quality between Samruk and the latter.
"Samruk should gradually replace the government as the major supporter of
the subsidiaries, which will make the credit quality of the Samruk subsidiaries
more dependent on that of the Samruk group as a whole," said Mr. Korovin.
"Ultimately, we expect the ratings on the subsidiaries to be capped by the
credit quality of the consolidated Samruk group."
[2006-06-27]