Fitch cuts Kazakh companies

Fitch Ratings said it has downgraded the long-term foreign currency ratings of three Kazakh energy companies and a railway group while the agency has simultaneously revised the foreign currency outlooks on three separate energy groups and affirmed their ratings.

All the rating actions follow a sovereign downgrade of Kazakhstan's long-term foreign currency issuer default rating to BBB- from BBB, Fitch noted.

Kazakhstan's long-term local currency issuer default rating has meanwhile been downgraded to BBB from BBB+, the agency said, adding that the sovereign downgrade reflects concern that a weakening bank sector and the government's intention to draw-down an oil fund, to support the banking system and potentially the real economy, will jeopardize public finances.

Fitch said that Kazakh companies whose foreign currency ratings have been downgraded are: Kazakhstan Temir Zholy with long-term foreign currency issuer default rating downgraded to BBB- from BBB, outlook remains negative, and senior unsecured rating: downgraded to BBB- from BBB;

• KazMunaiGaz National Co. with long-term foreign currency issuer default rating: downgraded to BBB- from BBB, outlook remains negative; long-term local currency issuer default rating affirmed at BBB; short-term foreign currency issuer default rating affirmed at F3; and senior unsecured rating downgraded to BBB- from BBB;

• Kazakhstan Electricity Grid Operating Co. with long-term foreign currency issuer default rating downgraded to BBB- from BBB, outlook remains negative; long-term local currency issuer default rating: downgraded to BBB from BBB+; and short-term foreign currency issuer default rating affirmed at F3; and

• Mangistau Electricity Distribution Network Co. with long-term foreign currency issuer default rating downgraded to BB from BB+, outlook revised to negative from stable; foreign currency senior unsecured rating downgraded to BB from BB+; short-term foreign currency issuer default rating affirmed at B; local currency senior unsecured rating affirmed at BB+; and national long-term rating upgraded to AA-(kaz) from A+(kaz).

The agency said that Kazakh companies whose foreign currency outlooks have been revised and ratings affirmed are: JSC KazMunaiGas Exploration Production long-term foreign currency issuer default rating affirmed at BBB-, outlook revised to negative from stable; long-term local currency issuer default rating affirmed at BBB-; and short-term foreign currency issuer default rating affirmed at F3; and

• JSC KazTransOil long-term foreign currency issuer default rating affirmed at BBB-, outlook revised to negative from stable; and short-term foreign currency issuer default rating affirmed at F3.

Fitch said that the following ratings are unaffected: KazTransGas with long-term foreign currency issuer default rating BB, outlook stable; short-term foreign currency issuer default rating B; and long-term local currency issuer default rating BB; outlook stable;

• JSC Intergas Central Asia's long-term foreign currency issuer default rating: BB+, outlook stable; short-term foreign currency issuer default rating B; long-term local currency issuer default rating: BB+; and senior unsecured rating: BB+; and

• JSC National Atomic Co. Kazatomprom with long-term foreign currency issuer default rating affirmed at BBB-, outlook revised to negative from stable; and short-term foreign currency issuer default rating affirmed at F3.

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