Moody's reviews Kazakh issuers

Moody's Investors Service said it concluded its ratings review for 10 of the 11 government-owned corporate issuers of Kazakhstan, adding that ratings had been placed on review for downgrade on June 15, prompted by concerns that ongoing stress in the nation's economy, particularly within its financial sector, might overtime result in the government having to become more selective in its allocation of support to its corporate state-owned enterprises where the need for future substantial capital investments is anticipated.

Confirmed ratings include: KazMunayGas NC at Baa2; outlook negative; KazMunaiGas E&P at Baa2; outlook negative; Kaztransgas at Baa2; outlook negative; Intergas Central Asia at Baa2; outlook negative; Kaztransoil at Baa2; outlook negative; Kazpost at Baa3/Aa3.kz; outlook negative; Kazatomprom at Baa3; outlook negative; and Kaztemirtrans at Ba1; outlook negative.

Lowered ratings include Kazakhstan Electricity Grid Operating Co. to Baa3; outlook negative; and Kazakhstan Temir Zholy to Baa3; outlook stable.

And, ratings that remain under review include Food Contract Corp. at Baa3.

All ratings have an assigned negative outlook in line with Kazakhstan's sovereign rating, except for KTZ, which has a stable outlook to reflect that the ratings could accommodate some deterioration of the company's standalone credit assessment and a one-notch downgrade of the sovereign rating assuming that other GRI inputs remain unchanged, the agency said.

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