S&P has confirmed ratings of "Kazpost" JCS and withdrawn them at the instance of the issuer

/IRBIS, July 4, 2011/ - Ratings Services Standard & Poor's confirmed the ratings of Kazakhstan's postal service operator JSC "Kazpost" - long-term credit rating of "BB" and the national scale rating "kzA +", and then withdrew them on request of the issuer. As stated at the time of revocation the ratings reflected the high, according to S & P, probability of obtaining timely and adequate state support in an emergency situation and an assessment of their own creditworthiness of JSC "Kazpost" ("b"). S & P opinion on the high likelihood of government support in an emergency based on the following evaluation of JSC "Kazpost": - The important role of ensuring the delivery of and payment of pensions on behalf of the state. The share of "Kazpost" is more than 80% of the total volume of postal services and 45% of services in the payment of pensions and social benefits in Kazakhstan. "Kazpost" is almost a monopoly in rural areas, where 43% of the population lives. - Very strong relationship with the Government of Kazakhstan. The Kazakh government wholly owns "Kazpost" through the fund, "SK". Question about the partial privatization of "Kazpost" as well as several other organizations associated with the government, are being discussed in the "people's IPO", but analysts of S & P believe that privatization does not affect the strength of the bond with the state. At the time of the withdrawal of its own credit rating score of "Kazpost" ("b") reflects the weak performance of liquidity, low profitability, and weak systems of accountability and corporate governance "Kazpost". In addition, it adversely affected the company's plans to expand the more "risky" activities - retail lending, and the intention to raise about 4.2 bln of debt to finance its investment program. To evaluate its own credit positively influenced adequate capitalization and good market position of the company in the rural areas. As indicated, the S & P analysts assess liquidity of "Kazpost" as weak. Despite the fact that funds raised from capital markets (outstanding credit of the Islamic Development Bank (AAA / Stable / A -1 +) - 6,2 million on May 1, 2011), does not exceed 3% of total assets, total volume of current and short-term retail deposits as of May 1, 2011 exceeded the amount of cash and cash equivalents and unpledged marketable securities. "At the time of the withdrawal of ratings outlook on the ratings was defined as "stable", reflecting the low, in our opinion, likelihood of any change in policy and regulatory framework that could affect our assessment of (high) probability timely and adequate support of state in case of financial distress", - was stated in the message. [2011-07-04]