MOODY'S ASSIGNS A (P)Baa1 RATING TO GUARANTEED NOTES ISSUED BY KAZAKHSTAN TEMIR ZHOLY FINANCE BV; AFFIRMS ALL OTHER RATINGS; OUTLOOK POSITIVE
20.04.06 20:01
/REUTERS, April 20, 06/ - Moody's Investors Service has assigned a
provisional debt rating of (P)Baa1, to the Senior Unsecured Notes to be
issued by Kazakhstan Temir Zholy Finance BV (KTZ BV), a finance company
incorporated in the Netherlands and jointly owned by JSC Kazakhstan Temir
Zholy (KTZ) (99.64%) and by its subsidiary, JSC Kazzheldortrans ("KZDT")
(0,36%). The Notes are guaranteed by KTZ and its main operative
subsidiaries KZDT and JSC Lokomotiv ("Lokomotiv") whose activities are to
operate, respectively, all freight cars and locomotive fleet of KTZ group. At
the same time Moody's has affirmed the Baa3 Foreign Currency Rating and
A3 Local Currency Rating assigned to KTZ. The rating outlook remains
positive.
Moody's issues provisional ratings in advance of the final sale of securities
and these ratings reflect Moody's preliminary credit opinion regarding the
transaction. Upon a conclusive review of the final versions of all the
documents and legal opinions, Moody's will endeavor to assign a definitive
rating to the transaction. A definitive rating may differ from a provisional
rating.
The (P) Baa1 rating for KTZ BV's proposed senior unsecured notes has
pierced Kazakhstan's country ceiling of Baa3, in accordance with rating
methodology for such situation as updated in January 2005. The rating input
factors under this methodology are: (1) KTZ's A3 local currency issuer rating;
(2) the Baa3 country ceiling; (3) the Kazakhstan 's low moratorium risk; and,
(4) a moderately high risk for KTZ as a railways company to be affected by
any such moratorium.
In accordance with Moody's GRI methodology, the Baa3 Foreign Currency
Rating of KTZ reflects the combination of the following inputs:
- Baseline credit assessment ("BCA") of 5 (on a scale of 1 to 6, where 1
represents lowest credit risk)
- The local currency debt rating of the Government of Kazakhstan of Baa1
with positive outlook
- Dependence: Medium
- Support: High
Based in Astana, City, (Kazakhstan), KTZ is the monopoly operator of the rail
network in Kazakhstan and is the country's leading provider of freight services
and passenger services.
Milan
Marco Vetulli
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Frankfurt
Michael West
Managing Director
Corporate Finance Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
[2006-04-20]