Fitch affirms Mangistau Electricity

Fitch Ratings said it affirmed Mangistau Electricity Distribution Co. JSC's long-term foreign-currency issuer default rating at BB, short-term foreign-currency issuer default rating at B, long-term local-currency issuer default rating at BB+, national long-term rating at AA-(kaz), foreign-currency senior unsecured debt at BB and local-currency senior unsecured debt at BB+.

The outlook is stable.

The ratings are linked to those of Kazakhstan, but notched down to reflect little indication having been given by its parent, JSC Samruk-Energo, that it will provide timely financial assistance.

Its credit profile is supported by its near-monopoly position in electricity transmission and distribution in the Region of Mangistau, one of Kazakhstan's strategic oil and gas regions, Fitch said.

It also is underpinned by prospects for economic development and expansion in the region, the agency said.

The ratings are constrained by the company's small scale of operations, limiting its cash flow generation capacity and high exposure to a single industry, Fitch said.

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