BAKU, Azerbaijan, Dec. 28
By Nargiz Sadikhova - Trend:
Fitch Ratings has assigned Kazakhstan-based KazAgroFinance's (KAF) 12 percent senior unsecured local bonds maturing in December 2024 (ISIN KZ2C00006385) a final long-term rating of 'BB+', Trend reports with reference to Fitch.
The assignment of the final rating follows the completion of the issue on 24 December 2019 and receipt of documents conforming to the information previously received, the report said.
“The final rating is in line with the expected rating assigned on 14 November 2019 ('BB+(EXP)'),” the agency noted.
The issue's final ratings are in line with KAF's other outstanding local senior unsecured bond ratings issued under the same program and at the same level as the company's 'BB+'.
“Long-Term Local-Currency Issuer Default Rating (IDR) and 'AA(kaz)' National Long-Term Rating. This assumes average recovery expectations in case of default. KAF's ratings reflect Fitch's view of the moderate probability of state support to the company given its policy role in providing state-subsidised financial leasing and project financing to the agricultural sector,” the agency noted.
The report read that KAF is rated two notches below the sovereign due to its indirect state ownership and Fitch's view of its moderate policy role and importance for the country's economy and financial system as well as its small size.
“The issue's final ratings are sensitive to changes in KAF's Long-Term Local-Currency IDR and National Long-Term Rating, which are sensitive to the ability and propensity of Kazakhstan to support KAF,” the report said.
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