Due to the deterioration of oil prices not seen in a more than a decade, Moody’s placed the ratings of 32 integrated oil, exploration and production, and oilfield services companies in the EMEA region (Europe, Middle East and Africa) on review for downgrade, including JSC NC «KazMunayGas» (KMG) and KTO.
Decision for review of KTO’s rating for downgrade is due to similar action of Moоdy’s to the rating of KTO’s parent company - KMG. Moody’s consider, that KMG is exposed to the decline in oil price, that have reached nominal price lows not seen in more than a decade.
Moody’s analysts note, that current KTO’s rating Baa3 reflects its strong rates of operating activities and creditworthiness, as well as its strategic importance for the government of Republic of Kazakhstan. As analysts assess, the high level of support from the government reflects KTO’s strategically essential role for the government and the importance of energy exports to the Kazakhstan economy's growth.
According to analysts, KTO is characterized as a company with strong market position, diversified customer base, lack of debts on its level and satisfied indicators of liquidity.
Moody’s expects cash flow generation at KTO in 2016 to comfortably cover its maintenance capex, as well as dividend payouts in the amount of 40% of net profit.
Current rating of JSC «KazTransOil» is Baa3.
Reference:
«KazTransOil» JSC is a subsidiary of «KazMunayGas» NC JSC, national operator of the Republic of Kazakhstan for main oil pipeline. The Company operates a network of main oil pipelines extending over 5.4 th.km and waterlines with 2 thousand km extension, providing more than 8 thousand people with work places. The operating facilities of «KazTransOil» JSC are located in Karaganda, Pavlodar, South-Kazakhstan, North-Kazakhstan, Atyrau, Mangistau, West-Kazakhstan Kyzylorda, Almaty, Aktobe, East Kazakhstan regions of Kazakhstan.
Press relations service of «KazTransOil» JSC
