S&P ups KazMunayGas

Standard & Poor's said it raised the long-term issuer credit ratings on the core subsidiaries of Kazakhstan's 100% state-owned oil company, JSC NC KazMunayGas.

The agency also said it raised the ratings on 63%-owned oil production company JSC KazMunaiGas Exploration Production and 100%-owned KazTransOil to BBB- from BB+.

The outlook is stable.

The agency also said it revised the outlook on 100%-owned gas pipeline company KazTransGas and its 100%-owned gas pipeline operator JSC Intergas Central Asia to positive from stable, while affirming the long-term issuer credit ratings at BB.

The upgrade reflects an expectation that the subsidiaries would benefit from a degree of extraordinary government support in the event of stress, S&P said, due to their strong, albeit indirect, links with the government of Kazakhstan.

The ratings reflect an expectation of extremely high likelihood of extraordinary state support, given the group's role as a key government tool for managing state assets in the oil and gas sector, the agency said.

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