Moody's may raise PetroKazakhstan

Moody's Investors Service said it placed the Ba3 corporate family rating for PetroKazakhstan Inc. on review for possible upgrade.

The company, which is the guarantor of the $125 million notes issued by PetroKazakhstan Finance BV, announced Monday that it has entered into an arrangement agreement with CNPC International Ltd., which has offered to buy all outstanding PetroKazakhstan common shares for $4.2 billion in cash.

Moody's rating action is in response to the expectation that a successful acquisition will have a positive impact on PetroKazakhstan's rating considering the stronger credit profile of China National Petroleum Corp., which is the 100% parent company of China National Petroleum. The closure of the transaction is expected in October.

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