BAKU, Azerbaijan, June 30. Fitch Ratings agency upgraded Kazakhstan's KazTransOil's (KTO) Long-Term Issuer Default Rating to 'BBB' from 'BBB-' with a stable outlook, KazTransOil told Trend.
As noted by the company, KTO's National Long-Term Rating was also upgraded to 'AAA(kaz)' from 'AA+(kaz)', also with a stable outlook.
The upgrade is in response to Fitch's upgrade of KTO's direct parent, KazMunayGas National Company (BBB/Stable). As a result, KTO's rating now aligns with its unchanged 'bbb' Standalone Credit Profile (SCP), consistent with Fitch's criteria for evaluating the relationship between parent and subsidiary companies.
KTO's SCP ('bbb') reflects its robust business profile as a national operator of oil pipelines in Kazakhstan. It also highlights its ability to generate reasonably stable cash flows, despite operating within a regulatory framework that is less predictable compared to its European counterparts. Furthermore, KTO demonstrates a strong financial profile.
As a result of the revision, KTO’s rating is now equalized with the sovereign rating of the Republic of Kazakhstan ('BBB' with a stable outlook).