Fitch rates KazAgroFinance bonds BBB-

Fitch Ratings said it assigned an expected long-term local-currency rating of BBB- to KazAgroFinance’s upcoming issue of tenge-denominated bonds, along with an expected national long-term rating of AA(kaz).

The planned issue amount is 17 billion in Kazakhstani tenge and the tenor is 8.5 years, Fitch said.

The bonds are rated at the same level as the company’s long-term local-currency issuer default rating of BBB- and national long-term rating of AA(kaz).

Its ratings, in turn, reflect the likelihood of support it may receive, if needed, from Kazakh authorities through KazAgro National Management Holding JSC, the agency said.

This is based on a track record of capital injections, low cost of potential support, KazAgroFinance’s status as a material subsidiary of KazAgro and the significant risks of reputational- and market-access damage in case of KazAgroFinance’s default, Fitch said.

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