On November 12, 2018 the international rating agency S&P Global Ratings (hereinafter – agency) raised JSC KazTransOil's (hereinafter – KTO) long-term credit rating to «BB» from «BB-» with a stable outlook following the upgrade of the immediate parent company JSC NC KazMunayGas (hereinafter – KMG).
According to the agency, the stable outlook mirrors that on KTO's immediate parent, KMG, and agency’s expectations of solid credit metrics supported by profitable midstream operations and absence of debt at the KTO level. Agency believes that KTO cannot be insulated from the risks attributable to the group, therefore agency does not rate the subsidiary above the parent.
Agency would likely raise the rating on KTO if they took a similar action on KMG.
