Baku, Azerbaijan, Sept. 22
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Fitch Ratings has assigned JSC KazTransGas Aimak's (KTGA, BBB-/Stable) upcoming notes an expected senior unsecured 'BBB-(EXP)' rating and National senior unsecured 'AA(kaz)(EXP)' rating. The assignment of the final rating is contingent upon the receipt of final bond documentation by Fitch, said the message posted on the website of the agency.
The notes are to be issued under KTGA's Medium-Term Note Programme and may be denominated in Kazakh tenge or in other currencies. We expect KTGA to use the notes proceeds for general corporate purposes.
KTGA is Kazakhstan's state-owned near-monopoly engaged in domestic natural gas transportation and distribution. KTGA's ratings are aligned with that of KazTransGas JSC (KTG, BBB-/Stable), its immediate parent and Kazakhstan's national gas operator, due to strong parent-subsidiary linkage, eg, financial guarantees that KTG provided for a portion of KTGA's debt, cash equity injections, operational interdependence and a common planning and budgeting process. We rate KTG one notch below JSC National Company KazMunayGas (NC KMG, BBB/Stable), its ultimate shareholder (see "Fitch Affirms KazTransGas and Subsidiaries at 'BBB-'; Outlook Stable" dated 21 April 2015 for the rating rationale).