Fitch upgrades KazTransGas

Fitch Ratings said it upgraded KazTransGas JSC's (KTG) and fully owned subsidiaries Intergas Central Asia JSC's and KazTransGas Aimak JSC's long-term foreign- and local-currency issuer default ratings to BBB- from BB+.

The outlook is stable.

The agency also assigned an expected senior unsecured BBB-(EXP) rating to KazTransGas' proposed bond issue.

Fitch said the upgrade of KazTransGas and its subsidiaries follows alignment of its ratings with those of its parent, JSC National Co. KazMunayGas (NC KMG, BBB-/stable), based on the evidence of strong support for KazTransGas in the form of regulated tariff increases, KazTransGas’ greater share in NC KMG's actual and projected funds from operations (FFO), and financial assistance from the parent.

KazTransGas’ ties with NC KMG are underpinned by the former's dominant position in national gas transportation and distribution and cross-default provisions, as in NC KMG's Eurobonds.

KazTransGas’ issuer default rating is currently one notch below that of Kazakhstan (BBB/stable).

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