ASTANA, Kazakhstan, July 16. Fitch Ratings agency has affirmed Kazakhstan Housing Company's (KHC) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB' with a stable outlook, Trend reports.
As noted by the agency, Fitch's affirmation of KHC's (BBB/Stable) rating is based on their recognition of the strategic significance of KHC for Kazakhstan. This is due to KHC's role as the primary operator in housing development and as a central entity in consolidating the housing sector.
Among the key drivers contributing to this rating, Fitch noted the fact that KHC is fully owned by the state via Kazakhstan's Baiterek National Managing Holding JSC (BBB/Stable). Baiterek operates on behalf of the government and is responsible for approving KHC's budgets, borrowing decisions, investments, and dividend policy. Fitch anticipates that, if necessary, transferring liabilities to the state or entities designated by the state would be one of the supportive measures taken.
Furthermore, according to Fitch, KHC utilizes low-cost long-term state funding for the implementation of state programs. The main forms of funding are loans and bonds from Baiterek, which represent around 94 percent of KHC's debt.
In addition, among other factors contributing to Fitch's decision, KHC's socio-political importance was indicated. This was due to the company's significant role in state housing development and a lack of direct substitutes.