Fitch affirms Kazakhstan Electricity Grid

Fitch Ratings said it affirmed Kazakhstan Electricity Grid Operating Co.'s long-term foreign-currency issuer default rating at BBB-, long-term local-currency issuer default rating at BBB and short-term foreign-currency issuer default rating at F3.

The outlook is stable.

The ratings are aligned with those of the Republic of Kazakhstan, due to 100% indirect state ownership, direct government guarantees for a large part of its debt and the strategic nature of Kazakhstan's national electricity transmission grid, Fitch said.

Fitch said it views the company's unguaranteed business and financial profile as commensurate with a weak position within the BB rating category, largely due to financial risk stemming from its large dollar-denominated variable interest-rate debt position.

The financial pressure on the company, as a result of the economic slowdown and tenge devaluation, has led to fast-tracked liquidity support from Samruk-Kazyna, the agency said.

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