S&P: KTZ, KTT outlook positive

Standard & Poor's said it revised the outlook to positive from stable on Kazakhstan Temir Zholy and affirmed the BB+ long-term corporate credit and kzAA- Kazakhstan national scale ratings.

The agency revised the standalone credit profile on KTZ to b+ from bb.

"The outlook revision reflects our view of the positive operational and financial evolution of the KTZ group, although the ratings remain constrained in the short term by the group's reliance on lower-rated banks holding most of its cash position," S&P analyst Vincent Allilaire said in a statement.

"The affirmation of the corporate credit ratings reflects our opinion that there continues to be a 'very high' likelihood that the Republic of Kazakhstan (foreign currency rating BBB-/stable/A-3) would provide timely and sufficient extraordinary financial support to KTZ in the event of financial distress.

"The ratings on KTT reflect the credit quality of KTZ because of the economic integration and interdependency between the two entities, and cross-default clauses and cross-guarantees linking the entities. As a consequence, we take a consolidated view of the KTZ group."

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