Fitch affirms KazMunaiGaz

Fitch Ratings said it affirmed KazMunaiGaz's long-term foreign- and local-currency issuer default ratings at BBB and short-term foreign-currency issuer default rating at F3.

The outlook is negative.

The affirmation follows news that the company plans to increase its stake in the Kashagan oilfield to 16.81% from 8.33%. The increased stake will cost $1.78 billion, financed by cash flows from the project.

Fitch noted that the oil and gas industry is crucial to the country's economy, contributing 16% of its GDP. Furthermore, the current oil price environment is favorable, underpinning the economics of investments in the Kashagan field, the agency added.

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