S&P: Kazakh IFR Cos unaffected by sovereign upgrade

/REUTERS, Almaty, May 21, 04/ - Standard & Poor's Ratings Services said today that its ratings on four Kazakh infrastructure companies-- Kazakhstan Electricity Grid Operating Co. (JSC) (BB+/Stable/--), Kazakhstan Temir Zholy (BB+/Stable/--), the KazTransGas (BB/Stable/--) and Intergas Central Asia group (BB/Stable/--), and KazTransOil (BB/Positive/--)--remain unchanged after the upgrade of the Republic of Kazakhstan (BBB/Stable/A-3). The ratings on the four companies are dependent on government support through regulation, policy decisions, and financial or management support. The government plans to limit explicit support, however, and so creditworthiness will increasingly depend on the companies' business profile and financial characteristics. Kazakhstan's weak institutional and legal systems, poor record of tariff setting and management of state property, continue to place some limitations on company operations. The ratings on the companies are therefore not equalized with the sovereign ratings. Standard & Poor's will continue to observe changes in policies implemented by the government towards the companies and assess the implications for their credit quality. [2004-05-21]