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Fitch affirms long-term IDR of Kazakhstan's Astana Gas KMG

Kazakhstan Materials 5 October 2023 16:00 (UTC +04:00)
Madina Usmanova
Madina Usmanova
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ASTANA, Kazakhstan, October 5. Fitch Ratings has affirmed Kazakhstan's Astana Gas KMG's (AG) Long-Term Issuer Default Rating (IDR) at 'BB' with a stable outlook, Trend reports.

As noted by the agency, the affirmation reflects the project's unchanged strong linkage to its ultimate sponsor, the Republic of Kazakhstan (BBB/Stable).

Under Fitch's Government-Related Entities (GRE) Criteria, Rating Agency classify AG as an entity with strong links to its ultimate sponsor, based on state funding, policy support, and indirect full state ownership and control via Sovereign Wealth Fund Samruk-Kazyna JSC (BBB/Stable; 50 percent) and JSC National Management Holding Baiterek (BBB/Stable; 50 percent).

Fitch believes the state's incentive to support AG in case of a default is held back by the increasing but still limited usage of the pipeline project until grid connections are finalized and the project's funding, which is only moderately reliant on international sources.

As a result, the GRE Criteria lead to a top-down minus three-notches approach, which leads to AG's 'BB' rating versus Kazakhstan's 'BBB', based on Fitch's combined assessment of the strength of linkage to the government and its incentive to support.

Fitch Ratings Inc. is one of the world's most reliable rating agencies. Its purpose is to deliver business intelligence to help clients make better decisions and reduce business risks. Uzbekistan’s score in the company’s rating has remained unchanged for the fifth year since the country was assigned a credit rating in 2018.

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