S&P affirms KazTransGas

Standard & Poor's said it affirmed the BB long-term corporate credit ratings on KazTransGas and its 100%-owned gas pipeline operator JSC Intergas Central Asia.

The outlook remains negative.

Ratings incorporate support from parent JSC NC KazMunayGas (BBB-/negative), the agency said.

The two-notch difference reflects the issuer's standalone weaknesses, including ambitious investments in gas transmission and distribution, a weak financial profile, potential competition from alternative gas export pipelines and opaque retail gas tariff regulation in Kazakhstan and Georgia, the agency noted.

These weaknesses are mitigated by the favorable location of transit gas pipelines between Central Asian gas producers and European suppliers, strong gas demand in Europe and monopoly gas supplier position in the service area, S&P said.

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