BAKU, Azerbaijan, December 27. Fitch Ratings affirmed JSC National Company Kazakhstan Temir Zholy’s (KTZ) long-term Issuer Default Rating at “BBB-” with a stable outlook, Trend reports, citing Fitch.
The affirmation is underpinned by KTZ's 100% indirect ownership by the Kazakh government via Sovereign Wealth Fund Samruk-Kazyna JSC (BBB/Stable) and its status as a strategic enterprise for the state.
According to the agency, the government will support the National Company should any negative scenario unfold, as the economic repercussions for the government in the event of KTZ’s default would be significant. KTZ operations accounted for 40 percent of the national transportation and the company links the geographically dispersed population of Kazakhstan.
Fitch's statement says that a downgrade of Kazakhstan's sovereign rating could lead to a downgrade of the rating.