On February 19, 2016 Standard and Poor’s revised for downgrade ratings of Kazakhstan-based companies in the commodity exports, infrastructure, and utility sectors, including NC JSC «KazMunayGas» (hereinafter – KMG) and JSC «KazTransOil» (hereinafter – KTO). The downgrade of ratings is due to downgrade of sovereign rating of Republic of Kazakhstan to «BBB-», outlook «Negative» on February 17, 2016, which is based on weaker growth outlook of the economy.
Standard and Poor’s note, that downgrade of KTO’s rating reflects the downgrade of KTO’s parent – KMG. Taking into account KTO's status as a «strategically important» subsidiary of KMG and the point of Standard and Poor’s that there is a «high» likelihood that KTO in the event of financial stress would receive timely and sufficient extraordinary support directly from the government, Standard and Poor’s revised KTO’s long-term rating similar to KMG’s rating on the level of «BB», outlook «Negative».
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
