S&P: Temir Zholy, Kaztemirtrans to negative

Standard & Poor's said it revised its outlook on Kazakhstan Temir Zholy (KTZ) and its core subsidiary, Kaztemirtrans, to negative from stable.

At the same time, the agency affirmed its BBB- long-term corporate credit and kzAA Kazakhstan national scale ratings on KTZ and Kaztemirtrans.

The actions follow the downgrade of Kazakhstan and assignment of a negative outlook.

S&P said it revised the outlooks on KTZ and Kaztemirtrans because of their status as government-related entities, incorporating a three-notch uplift to take into account the expectation of a "very high" likelihood of government support if needed and reflecting the high likelihood that the agency would downgrade KTZ and Kaztemirtrans if it downgraded the sovereign further.

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