BAKU, Azerbaijan, Nov.15
By Nargiz Sadikhova - Trend:
Fitch Ratings has assigned Kazakhstan-based KazAgroFinance's (KAF) planned senior unsecured bond issue an expected Long-Term rating of 'BB+(EXP)' and National Long-Term Rating of 'AA(kaz)(EXP)', Trend reports with reference to the Fitch report.
“Assigning final ratings to the issue is contingent on the receipt by Fitch of final documents conforming to information already provided to us by KAF,” the report said.
According to Fitch, the tenge-denominated bonds are expected to be issued under the company's second bond program for 20 billion tenge ($51.5 million) and will have a tenor of five years.
“The planned issue's expected 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 its '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,” the report said.
Furthermore, Fitch notes that KAF's ratings reflect Fitch's view of the moderate probability of state support to the company given its policy role in provision of state-subsidised financial leasing and project financing to the agricultural sector.
“The issue ratings would likely mirror KAF's Long-Term Local-Currency IDR and National Long-Term Rating, which are sensitive to the ability and propensity of Kazakhstan (BBB/Stable) to support KAF,” the report said.
The planned issue's ratings are aligned with KAF's Long-Term Local-Currency IDR and National Long-Term Rating which are driven by potential support from the government of Kazakhstan (BBB/ Stable), Fitch concluded.
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