Kazkommerts Securities OJSC assigned Zhairemskiy OMPE OJSC credit rating "B" with stable outlook, bonds' rating is being examined

/IRBIS, January 22, 03/ - On January 15 of 2003 Kazkommerts Securities OJSC (Almaty) assigned Zhairemskiy OMPE OJSC (Zhairem settlement of Karaganda oblast), which's bonds have been included into Kazakhstan stock exchange's (KASE) official "А" listing category, rating on the level of "В" with stable outlook, having estimated the company's ability to answer for its financial obligations. According to the report about rating assigning, which has been presented to IRBIS, the estimation reflects a higher (relative to "ВВ" ratings and higherи) company's vulnerability in presence of unfavorable, financial and economic conditions. "However at present there is the possibility of financial obligations fulfillment ", - says the report. Major production of Zhairemskiy OMPE OJSC is magnesium concentrate, which is the raw stuff for ferroalloys production, which, in their turn, alloying addition deoxidizers while steel production. Besides, the company produces ferromanganese concentrate, which is used while cast iron production (major purchaser of the production is Ispat-Karmet OJSC), and barite concentrates, which are used as fillers while preparation of drilling fluid in oil and gas branch. Bonds of Zhairemskiy OMPE OJSC, which are indexed on tenge devaluation (KZ2CKY04A484; KASE's trade code - JGOKb1; KZT10,000, KZT2,300.0 m; March 4, 02 - March 4, 06; semi-annual coupon 10.0% APR) were included into KASE's lists since July 1 of 2002. trades on the bonds have not been opened yet because by the date of credit rating assigning (according to the information of Kazkommerts Securities OJSC) the company had not floated the issue. "This is connected with incompleteness of basic engineering project of ferroalloy plant, for financing of which the bonds floatation had been planned", - says the report about rating assigning. This circumstance served Kazkommerts Securities OJSC as the basis to leave bonds' rating in examination "till the final making of decision on floatation of liabilities at the market ". Ratings scale, which is used by KKS, looks like the one of Standard & Poor's very much. Group of ratings "А" (ААА, АА and А) means high ability of issuer to fulfill financial liabilities, group "В" (ВВВ, ВВ and В) - sufficient ability and having sensitiveness for unfavorable economic and financial conditions. Credit ratings of the group "С" (ССС, С and С) mean that at the moment the company is in an unfavorable situation, however fulfillment of financial liabilities by it continues. Credit rating "SD" means electoral non-fulfillment by a company of certain types of financial liabilities, and rating "D" - non- fulfillment of all financial liabilities. The scale comprises intermediary gradations ("+" and "-"), and also using of ratings outlooks, which, according to the words of collaborators of Kazkommerts Securities OJSC, reflect possibility of changing ratings or their stability in the nearest future. Till present estimation from Kazkommerts Securities OJSC was received by: - Karazhanbasmunai OJSC (Aktau) - "ВВ"/stable, bonds rating - "ВВ-" (November 20, 02); - Hurricane Hydrocarbons Ltd. (headquarters - Calgary, Aiberta, Canada) - "ВВВ"/positive, rating of 12% bonds - "ВВВ" (November 20, 02). Rating reports on Karazhanbasmunai OJSC and Zhairemskiy OMPE OJSC as KASE's listing companies will be published on the web-site of KASE (www.kase.kz) during this week. [2003-01-22]