S&P assigned National Maritime Shipping Co. Kazmortransflot (JSC) governance score at 'CGS-4+'

/Standard & Poor's, Moscow, April 11, 08/ - Standard & Poor's Governance Services said today that it assigned its corporate governance score (CGS) on the National Maritime Shipping Co. Kazmortransflot (JSC) (KMTF) at CGS-4+'. KMTF is the only national maritime company in Kazakhstan. It was formed primarily to create a national merchant marine fleet for the Republic of Kazakhstan (foreign currency BBB-/Stable/A-3, local currency BBB/Stable/A-3) and to organize international sea shipping of domestic goods. "The CGS on KMTF reflects the strong commitment by shareholders and management to enhance corporate governance procedures at the company that are not sufficiently developed to date," said Standard & Poor's governance analyst Elena Dubovitskaya. "The score is largely constrained by the unbalanced board structure and weak information disclosure practices." The overall CGS on KMTF is the result of four component scores on the global scale of 1 (low) to 10 (high). For each component the score is shown in brackets: - Ownership structure and external influences (5+) - Shareholder rights and stakeholder relations (6) - Transparency, disclosure, and audit (4) - Board structure and effectiveness (4) The main strengths of corporate governance practices at KMTF are: - The only shareholders of KMTF, state-owned holding company Samruk and its 100% subsidiary NC Kazmunaigas (KMG), genuinely intend to implement leading international corporate governance practices at the company. - KMTF's shareholders are committed to supporting the company's development. - There are generally sound shareholder meeting procedures. International Financial Reporting Standards (IFRS) statements are sent to shareholders far in advance of the annual general meeting (AGM). - An international reputable firm audits KMTF's financials. An audit committee chaired by an independent director with relevant experience supervises the audit process. - There are two highly professional independent directors on the board. Standard & Poor's has, however, identified several weaknesses in the company's governance system, including: - There is a relatively low level of disclosure. The Web-site does not contain IFRS financials, the annual report, or the company's bylaws. The information on the company's Web-site is partly out of date. - The board has a limited role in the company's strategic decision-making process. - Only one board committee is active, and there is no proof of activity at other committees. Information on ratings and corporate governance scores, including the related report "Corporate Governance Score: Kazmortransflot," is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. It can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Corporate Governance reports are available on the governance section of this site at www.governance.standardandpoors.com, and on the Russian language Web site at www.standardandpoors.ru. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5916; or Moscow (7) 495-783-4017. Members of the media may also contact the European Press Office via e-mail on: media_europe@standardandpoors.com. For detailed information please contact to: Elena Dubovitskaya, Moscow (7) 495-783-40-42 elena_dubovitskaya@standardandpoors.com Elena Pastoukhova, Moscow (7) 495-783-40-94 elena_pastoukhova@standardandpoors.com; Governance@standardandpoors.com [2008-04-14]