Moody's rates Zhaikmunai eurobond B3

Moody's Investors Service said it assigned a first-time corporate family rating of B3 to Zhaikmunai LP, a probability of default rating of B2 and a provisional B3 rating to its planned eurobond issuance, with a loss given default assessment of LGD4, 65%.

The outlook is positive.

The ratings reflect the company's currently small scale of operations and extremely high field concentration as the company operates only one field in Kazakhstan, Moody's said.

The ratings also consider its highly leveraged financial profile due to extensive investment in the field's infrastructure in order to boost production growth and its exposure to Kazakhstan's country and operational risks, the agency said.

The company also benefits from good field geology, Moody's added.

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