Fitch affirms KazExportAstyk

Fitch Ratings said it affirmed JSC Holding KazExportAstyk's long-term foreign- and local-currency issuer default ratings at B and national long-term rating at BB(kaz) with a stable outlook. The agency also affirmed its senior ratings at B- and national senior rating at B+(kaz) with a recovery rating of RR5 and removed the Rating Watch negative on these ratings.

The affirmation of the issuer default rating reflects the agency's expectations of KazExportAstyk's relatively strong financial performance in 2012 due to favorable selling prices more than offsetting weaker crop yields. Fitch said KazExportAstyk has also continued to improve its debt profile, which resulted in the removal of the Rating Watch negative attached to its debt ratings.

The issuer default rating continues to reflect the group's moderate to high business risks due to the cyclicality and seasonality of the agricultural commodities sector, its reliance on one geographical area and lack of any large-scale vertical integration or diversification beyond crop rotation and ancillary agricultural services, the agency said.

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