S&P rates Kazakhstan Temir Zholy notes BB+

Standard & Poor's said it assigned its BB+ long-term senior unsecured debt rating to the proposed notes issue by Kazakhstan Temir Zholy Finance BV, a finance company jointly owned by Kazakhstan Temir Zholy (KTZ, BB+/stable, Kazakh national-scale AA-(kz)) and its 100% subsidiary Kazzheldortrans (KTZ).

S&P added that the rating on the notes is the same as the corporate credit rating on KTZ, reflecting that the notes will be irrevocably, unconditionally, jointly and severally guaranteed by KTZ and its two major operating subsidiaries, KZDT and JSC Locomotiv and will rank equal to the group's other senior unsecured obligations.

The ratings on KTZ continue to reflect the group's aggressive financial profile, which factors in the need for significant medium-term borrowing to invest in rail infrastructure and rolling stock, the agency noted.

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