Fitch assigns Samruk-Energy's domestic bonds 'BBB' rating
Azerbaijan, Baku, Nov. 30 / Trend E. Kosolapova/
Fitch Ratings has assigned Kazakhstan-based Samruk-Energy's 3 billion tenge (150.52 tenge = $1) 6 percent domestic bonds a 'BBB' local currency senior unsecured rating and 'AA+(kaz)' National senior unsecured rating.
Fitch has notched down the local currency senior unsecured rating by one notch from Samruk-Energy's Long-term local currency Issuer Default Rating (IDR) of 'BBB+' due to the structural and contractual subordination in the group's debt structure. Secured and prior-ranking debt at the operating company level constituted 61 percent of group debt (based on IFRS accounts' treatment of shareholder loans) and materially exceeded 2x group EBITDA at end-2011. Future senior unsecured debt raised at the Samruk-Energy holding company level is expected to be subordinated to other prior-ranking creditors within the group.
Fitch will monitor the company's planned progress in raising senior unsecured debt and repayment of this prior-ranking debt, thereby reducing the degree of subordination at the holding company level.