Fitch upgrades KazAgroFinance's rating
Azerbaijan, Baku, Nov. 22 / Trend E. Kosolapova /
Fitch has upgraded KazAgroFinance's (KAF) Long-term IDR to 'BB+' from 'BB', Outlook Stable, the agency said today.
Short-term foreign currency IDR affirmed at 'B'
National Long-term rating upgraded to 'AA-(kaz)' from 'A(kaz)'; Outlook Stable
Support Rating affirmed at '3'
Support Rating Floor revised to 'BB+' from 'BB'
The rating actions follow Fitch's upgrade of Kazakhstan's Long-term foreign currency IDR to 'BBB+' from 'BBB' and Long-term local currency IDR to 'A-' from 'BBB+' on 20 November 2012.
The IDRs reflect a moderate probability of support from the Kazakh authorities. The company's ratings also factor in the company's small size (USD0.9bn total balance sheet at end-2011) and, hence, cost of support, the track record of government-provided non-equity funding and capital, and the historically low leverage the company operates with, the message said.
KAF's sub-investment grade rating, and the current three notch differential between the company's IDR and that of the Kazakh sovereign, reflect KAF's less prominent policy role as a development institution and lesser importance for the country's economy and financial system relative to other development institutions in Kazakhstan.