Fitch Assigns KazakhGold's Senior Notes 'B' Final Rating

/Fitch Ratings, November 3, 06/ - Fitch Ratings has today assigned KazakhGold Group Limited's ("KazakhGold") USD200 million 9.375% senior notes issue due 2013 a final 'B' rating and a final 'RR4' Recovery rating. At the same time, Fitch has affirmed KazakhGold's foreign currency Issuer Default rating ("IDR") at 'B' with Stable Outlook. KazakhGold is a Kazakhstan-based gold producer, which is undertaking a major expansion and modernization programme at its three operating gold mines. The capital expenditure is primarily being funded by proceeds from the company's IPO on the London Stock Exchange (late 2005) and the USD200m senior notes. The issue was upsized from an original proposed amount of USD150m. The additional proceeds from the upsized amount will be used to support KazakhGold's expansion plans, to reduce debt and to provide additional liquidity to supplement the company's funding requirements. The 'RR4' Recovery rating reflects average recovery prospects in the event of default. Recovery ratings for Kazakhstan corporates are capped at 'RR4'. The senior notes issue is guaranteed by KazakhGold's operating subsidiaries and includes a covenant package viewed as typical for a high-yield offering. These provisions include a limitation on debt incurrence, limitation on restricted payments, negative pledge (limitation on liens) as well as standard covenants regarding mergers, sales of assets and affiliated transactions. Contacts: Angelina Valavina, London, Tel: +44 20 7417 6270; Oguz Bardak, Istanbul, +90 212 279 1065; Michael Hermans, Brisbane, +61 7 3222 8615 Media Relations: Mayra Cunningham, London, Tel: +44 20 7417 3557. [2006-11-03]