S&P affirms Temir Zholy

Standard & Poor's said it affirmed its BB+ long-term corporate credit and kzAA- Kazakhstan national scale ratings on Kazakhstan Temir Zholy.

The outlook is stable.

The agency said the ratings on Temir Zholy reflect the company's strong market and competitive position in the national transport sector; vertically integrated business model, which combines monopoly rail infrastructure and profitable freight transport operations; intermediate financial profile and moderate financial policy; and its high strategic importance to the state and strong government support.

The ratings on Temir Zholy are constrained by an opaque regulatory regime in Kazakhstan, the company's obsolete assets and aggressive investment program, ongoing rail-sector restructuring, the risk of commodities traffic volatility and competition from oil pipelines, S&P said.

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