Azerbaijan, Baku, Nov. 21 / Trend E. Kosolapova/
Fitch Ratings has upgraded Long-term foreign currency Issuer Default Rating (IDR) of Kazakh National Oil and Gas Company KazMunaiGas (KMG) to 'BBB' with a Stable Outlook.
Company's Long-term local currency IDR was upgraded to 'BBB+' with a Outlook Stable. Short-term foreign currency IDR was affirmed at 'F3'. Local currency senior unsecured rating was upgraded to 'BBB+'.
Fitch has also upgraded KazMunaiGaz Finance Sub B.V.'s foreign currency senior unsecured rating to 'BBB'.
"The rating actions reflect the agency's upgrade of Kazakhstan's Long-term foreign and local currency IDRs to 'BBB+' from 'BBB' and 'A-' from 'BBB+', respectively, on November 20, 2012. The Outlooks on Kazakhstan's Long-term foreign and local currency IDRs are Stable," Fitch said.
According to Fitch, the rating can be upgraded if sovereign ratings are upgraded.
The ratings can be degraded if sovereign ratings degrade, state support to the company weaken and undertakes aggressive acquisitions and/or an investment programme resulting in further material deterioration of the standalone credit metrics.
KazMunaiGas is the Kazakh national operator for hydrocarbon exploration, production, processing and transportation. The state owns 100-percent shares of the company.