On June 23, 2023, Fitch Ratings has upgraded JSC KazTransOil's (KTO) Long-Term Issuer Default Rating (IDR) to «BBB» from «BBB-». KTO's National Long-Term Rating was also upgraded to «AAA(kaz)» from «AA+(kaz)». The Outlooks are «Stable».
The upgrade follows Fitch's upgrade of KTO's immediate parent, JSC National Company KazMunayGas (KMG), and KTO's rating is now at the same level as its unchanged «bbb» Standalone Credit Profile (SCP)
KTO's SCP («bbb») reflects its solid business profile as a national operator of oil pipelines in Kazakhstan, fairly stable cash flow generation despite a less predictable regulatory framework than European peers', and a strong financial profile.
As a result of the revision, KTO’s rating is now equalised with the sovereign rating of the Republic of Kazakhstan («BBB», Stable «Outlook»).
