Moody's rates KazMunaiGas notes Baa2

Moody's Investors Service said it affirmed JSC NC KazMunaiGas' Baa2 issuer rating and assigned a provisional Baa2 senior unsecured issuer rating to a note offering that will be issued by KazMunaiGaz Finance Sub BV under its global medium-term note program, which has recently been increased to $7.5 billion.

The outlook remains negative.

The proceeds of the notes are expected to be on-lent by the issuer to KazMunaiGas with the main purpose of refinancing existing debt and to fund the company's share of capex of the Kashagan project.

The agency said the negative outlook is primarily driven by the weakened stand-alone profile of the KazMunaiGas group, which has been negatively impacted by the weak macroeconomic conditions in 2009 and the resulting slump in oil prices, refining margins and demand for hydrocarbons globally.

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