...

S&P assigns 'BB' rating to KazMunaiGas proposed bonds

Business Materials 12 April 2017 17:23 (UTC +04:00)
The International Rating Agency S&P Global Ratings assigned its 'BB' long-term issue rating to proposed bonds to be issued by Kazakhstan-government-controlled vertically integrated oil company KazMunaiGas
S&P assigns 'BB' rating to KazMunaiGas proposed bonds

Baku, Azerbaijan, April 12
By Elena Kosolapova – Trend:
The International Rating Agency S&P Global Ratings assigned its 'BB' long-term issue rating to proposed bonds to be issued by Kazakhstan-government-controlled vertically integrated oil company KazMunaiGas, S&P said in a message April 12.

KazMunaiGas plans to issue the proposed bonds directly within the framework of its $10.5 billion notes program.

"The issue rating on this debt mirrors our long-term corporate credit rating on KazMunaiGas. We estimate that the group's structurally and contractually priority debt (that is, secured debt and debt at cash-generating subsidiaries) is below 15 percent of the group's net assets, as most of the debt is currently unsecured and at the parent level,” the rating agency said.

According to S&P, the group intends to use the proceeds for general corporate purposes, including the refinancing of existing debt.

KMG is a 100 percent government-owned national oil company with stakes in essentially all of Kazakhstan's oil-related assets and priority access to new assets.

Follow the author on Twitter: @E_Kosolapova

Tags:
Latest

Latest