Moody's rates KazMunayGas Baa1

Moody's Investors Service said it assigned a Baa1 senior unsecured issuer rating to JSC NC KazMunayGas.

The outlook is stable.

The agency said the rating reflects KazMunayGas' strategic importance to the strongly developing Kazakh economy as it represents state strategic interests in the gas and oil industry, strong revenues coming from oil and gas exploration activities in the current strong macro-economic environment supported by high global hydrocarbon prices, the sizeable asset base and strong market and competitive positions of the company's subsidiaries, the positive track record and solid growth prospects of the company's businesses, oil and gas transportation activities that provide the company with favorable diversification into utility-type earnings and the support provided to the company's high level of investment capex by its strong financial profile and relatively modest level of debt.

The rating also reflects the company's dependence on its largest subsidiary, KMG E&P, which accounts for the majority of the company's revenue and EBITDA; the cyclical nature of the oil and gas exploration industry and the need to maintain tariff at profitable levels for the transmission business; a complex corporate structure with a number of subsidiaries involved in a wide range of industries; acquisition-related event risks; potential negative impact on performance from political interference, notably having to assume responsibility for the unprofitable enterprises notably International Aiport Atyrau and EuroAsiaAir; and risks associated with exposure to country-related risk factors, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.