S&P gives Kazakhstan Temir Zholy AA-

Standard & Poor's said it assigned its AA-(kz) national-scale rating to Kazakhstan Temir Zholy (KTZ).

The BB+ global scale rating with a stable outlook on the company is unaffected.

The ratings on KTZ reflect the poor and aged state of its operating assets, ongoing regulatory risk, the high level of expected capital expenditure and the requirement for additional borrowing in the medium term, S&P noted.

These risks are offset at this rating level by KTZ's position as a monopoly railroad infrastructure operator and dominant freight carrier; a strong intermodal competitive position; good medium-term rail traffic growth prospects and KTZ's strategic importance to and support from the government of Kazakhstan (foreign currency BBB-/stable/A-3; local currency BBB/stable/A-3), the agency added.

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