Fitch puts KazakhGold on positive watch

Fitch Ratings said it revised the Rating Watch on KazakhGold Group Ltd.'s CC long-term issuer default and senior unsecured ratings to positive from negative following Polyus Gold's announcement of a firm intention to make an offer to acquire 50.1% of KazakhGold in a cash-and-share transaction valued at $265 million.

While final terms of the offer document are yet to be disclosed and it is uncertain if the offer will succeed, the agency said it views the announcement as a major step in resolving KazakhGold's operational and financial difficulties.

Fitch said that in revising KazakhGold's Rating Watch, it balanced the positive effects of the possible acquisition against the remaining uncertainties surrounding the possible final terms and conditions of the transaction and the resulting effect on bondholders.

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