Fitch rates Mangistau Electricity bond BBB-

Fitch Ratings said it assigned a final local-currency senior unsecured BBB- rating to Mangistau Electricity Distribution Co. JSC's 1.7 billion in Kazakh tenge 8% domestic bond due 2023.

The rating is in line with the company's long-term local-currency issuer default rating of BBB- with a stable outlook.

The bond will be direct and unsecured obligations of the company, Fitch said.

The company has a long-term foreign-currency issuer default rating of BB+, long-term local-currency issuer default rating of BBB-, national long-term rating of AA(kaz), foreign-currency short-term issuer default rating of B, foreign-currency senior unsecured rating of BB+ and local-currency senior unsecured rating of BBB-.

The ratings are linked to those of Kazakhstan and notched down by three levels to reflect that little indication has been given by the company's state-owned parent, JSC Samruk-Energy, that it will provide timely financial assistance in case of need, Fitch said.

The ratings reflect a company credit profile that 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, the agency said.

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

The company also benefits from limited foreign-exchange exposure and absence of interest rate risks, the agency said.

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