S&P confirms KazTransGas

Standard & Poor's confirmed the issuer credit rating on KazTransGas and Intergas Central Asia at BB, ending a review. The outlook is stable.

S&P said the companies' ratings reflect the risk to cash flows resulting from their heavy dependence on the companies' major counterparty, the Russian gas monopoly OAO Gazprom (B+/Positive) and its affiliate trading companies, the group's lack of operating diversity; significant counterparty exposure to the gas exporting countries Turkmenistan and Uzbekistan and end markets, including Ukraine, and the potential for additional capital expenditure to upgrade and expand the network.

These risks are offset at this rating level by Intergas' monopoly position as the gas transport facility between central Asian gas exporters and the main European gas market, its strategic importance to the Republic of Kazakhstanand 100% ownership by the state-owned, strategically important KazMunaiGas group, S&P said.

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