S&P affirms Rompetrol

Standard & Poor's said it affirmed the B long-term corporate credit rating on Rompetrol Group NV and removed it from CreditWatch, where it was placed with negative implications on June 17.

The outlook is negative.

The affirmation reflects an assessment that the company's 100% shareholder JSC NC KazMunayGas (BB+/stable) is able and willing to provide liquidity support in a timely manner, even though its capacity to provide such support may be constrained over the medium term, according to the agency.

"The ratings on Rompetrol continue to depend largely on support from KMG, as Rompetrol's standalone credit profile, which we assess as CCC+, remains vulnerable. We understand that KMG's intention is to continue to support Rompetrol," S&P analyst Per Karlsson said in a statement.

"In our view, however, its ability to provide timely support is constrained. This is because KMG's cash is held with domestic banks and the company does not have full flexibility in managing these funds," Karlsson added.

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