S&P BULLETIN: KazTransGas ratings unaffected by gas cutoff

/REUTERS, London, December 30, 04/ - Standard & Poor's Ratings Services said today that the threat by Turkmenistan to stop its gas flows across Kazakh territory has so far had no negative effect on the credit ratings on Kazakhstan-based gas pipeline operator Intergas Central Asia (ICA; BB/Stable/--) and its holding company KazTransGas (KTG; BB/Stable/--). However, potentially protracted interruptions in Turkmen gas transit could materially impair KTG and ICA's cash flows. KTG and ICA are heavily dependent on Turkmen gas transit, which accounted for 48% of KTG group's revenue and 33% of gas transported in 2003. Should the government of Turkmenistan, the Russian gas company, OAO Gazprom, and the Ukrainian gas offtaker, Naftogaz fail to agree to the Turkmen gas price rise, it may result in declining transit volumes via ICA's network. [2004-12-30]