/KASE, November 20, 2019/ – KazTransOil (Nur-Sultan), whose shares are
officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE
with the following press release dated November 19, 2019:
On November 15, 2019 the international rating agency Fitch Ratings
(hereinafter -Fitch) affirmed default long-term rating of "KazTransOil" JSC
(hereinafter – KazTransOil or Compnay) in foreign currency at the level of
"BBB-" with a "Stable" outlook.
Fitch notes that KazTransOil’s ratings reflect its strong operating and
financial performance. The Company maintains a dominant position in the oil
transportation sector in the Republic of Kazakhstan, which is crucial for the
economy of the country. KazTransOil has strong operational and strategic ties
with JSC NC "KazMunayGas", which receives significant benefits from the free
cash flow of the Company through dividends. In addition, the Company is not
directly affected by fluctuations of oil prices, which is a favorable factor for
its business profile.
According to Fitch, KazTransOil has a positive impact due to agreements with
Russian companies on the transit of Russian oil to China and Uzbekistan
through Kazakhstan. PJSC Rosneft Oil Company increased its volumes of
transportation through Kazakhstan to China from 7 million tons in 2017 to 10
million tons in 2018. At the same time, Fitch analysts emphasize the ability of
KazTransOil to increase export tariffs, which is a favorable factor in the
creditworthiness of the Company. A similar change in tariffs (an increase of
10%) was approved on April 1, 2018
Fitch considers KazTransOil's separate operating profile to be in line with the
"bbb" rating category, which is being held back JSC NC "KazMunayGas" and
the regulatory environment.
More details are available on KASE website at:
– in Kazakh;
– in Russian;
– in English.