Fitch: KazAgroFinance bond BB+

Fitch Ratings said it assigned an expected long-term rating of BB+ to KazAgroFinance's planned series 2 senior unsecured bond issue, along with an expected national long-term rating of AA(kaz).

The tenge-denominated series 2 bonds are expected to be issued under the company's second bond program for 8 billion in Kazakhstani tenge and with a tenor of five years.

The expected ratings are in line with the company’s outstanding local senior unsecured bond ratings and at the same level as its BB+ long-term local-currency issuer default rating and AA(kaz) national long-term rating.

KazAgroFinance also has long-term foreign-currency issuer default rating of BB+ and short-term foreign-currency issuer default rating of B.

The ratings reflect a moderate probability of state support for the company given its policy role in provision of state-subsidized financial leasing and project financing to the agricultural sector, Fitch said.

The rating on the bond would be impacted by any change to the company’s long-term local-currency issuer default rating or national long-term rating, the agency added.

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