S&P changes Temir Zholy view to positive

S&P said it revised the outlook for Kazakhstan Temir Zholy to positive from stable, citing better-than-expected results.

“In contrast to challenges faced by many infrastructure operators globally, KTZ is less affected by the pandemic-related mobility restrictions because more than 90% of its revenue comes from freight. We expect KTZ’s freight turnover will increase by 2.5%-3% in 2020, thanks to active commodity exports and transit to China where post-pandemic economic recovery started already in second-quarter 2020,” S&P said in a press release.

The agency affirmed the BB- ratings on the company and its subsidiary Kaztemirtrans and upgraded the Kazakh national scale rating on both entities to kzA from kzA-.

“The positive outlook reflects the possibility of an upgrade within the next 12-24 months, if we believe the company will maintain FFO to debt above 12%, underpinned by a prudent financial policy and liquidity management, as well as relatively stable foreign exchange rates,” S&P said.

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