Fitch rates KazAgroFinance bonds B

Fitch Ratings said it assigned KazAgroFinance a short-term local-currency issuer default rating of B.

The agency also assigned the company’s planned short-term unsecured bond issue an expected short-term rating of B.

The proceeds will be used for purchases of lease equipment, new loans to clients and working capital management.

The long-term issuer default rating of BB+ reflects a view of a moderate probability of state support in case of need, given the institution's important policy role of providing state-subsidized leasing services to the agricultural sector, the agency said.

However, the ratings also factor in KazAgroFinance's somewhat lower importance for Kazakhstan's economy and financial sector compared with other policy institutions as well as indirect state ownership might in some scenarios impact the timeliness of state support, Fitch noted.

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