Fitch affirms KazMunaiGas Exploration

Fitch Ratings said it affirmed JSC KazMunaiGas Exploration Production's long-term foreign- and local-currency issuer default ratings at BBB- and its short-term foreign-currency issuer default rating at F3.

The outlook is stable.

KazMunaiGas Exploration has agreed to purchase 220 billion Kazakh tenge of bonds to be issued by its majority shareholder, KazMunaiGaz NC (BBB-/stable), in a move to support the parent company's liquidity.

Fitch believes that KazMunaiGas Exploration's strong financial profile provides sufficient headroom to absorb this transaction without a negative impact on its financial standing. Nevertheless, the agency would consider continuous and substantial financial support by KazMunaiGas Exploration to its parent as detrimental to the former's credit metrics.

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