Moody's drops Kaztemirtrans

Moody's Investors Service said it has downgraded to Ba1 from Baa3 the issuer rating of JSC Kaztemirtrans.

The outlook is stable.

At the same time, Moody's said it assigned a Ba1 corporate family rating, adding that the rating action concludes the review for possible downgrade that was initiated on Jan. 21 due to the challenging market environment facing the company and Moody's decision to reassess the support and default dependence assumptions embodied in the company's ratings under the agency's rating methodology for government related issuers to incorporate increasing reliance of key domestic businesses in the Republic of Kazakhstan on the government financial support.

The agency said that the rating action reflects the following Moody's decisions: (i) increase the default dependence assessment for the company to the high end of the medium category and, at the same time, (ii) lower somewhat the support flowing indirectly from the government of the Republic of Kazakhstan through Temir Zholy.

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