Fitch rates Mangistau bond BBB-

Fitch Ratings said it assigned Mangistau Electricity Distribution Co. JSC's 1.7 billion Kazakh tenge 8% domestic bond due 2023 an expected local currency senior unsecured BBB-(EXP) rating.

The rating is in line with Mangistau's BBB-long-term local currency issuer default rating, which has a stable outlook, as the bond will be direct and unsecured obligations of the company.

The company will use the proceeds of the bond issue for financing its investment program for 2013-2015.

Mangistau's ratings are linked to those of Kazakhstan, and notched down by three levels to reflect that little indication has been given by Mangistau's state-owned parent, JSC Samruk-Energy, that it will provide timely financial assistance to Mangistau in case of need. The notching reflects the fact that S-E has not provided tangible financial assistance to Mangistau in the past three years.

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