S&P assigns Uzbekneftegaz notes BB-

S&P said that it assigned its BB- rating to the planned senior unsecured notes to be issued by JSC Uzbekneftegaz.

“Despite significant potential structural subordination in the capital structure (about 60% of debt is issued by subsidiary, GTL), we aligned the rating on the notes with the long-term issuer credit rating. This is because we believe the government may intervene in the event of a bankruptcy process, since we assess Uzbekneftegaz as one of the most important state-owned corporations in Uzbekistan and closely affiliated with the government, reflecting its role as provider of gas and liquid hydrocarbons at relatively low tariffs to the domestic economy,” S&P said in a press release.

Uzbekneftegaz is expected to use the proceeds mainly to refinance maturing debt and finance its sizeable capital investments program.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.