S&P shifts KazTransGas view to positive

S&P said it changed KazTransGas’ outlook to positive from negative and affirmed its BB ratings.

KTG is now a direct subsidiary of Samruk-Kazyna, rated BBB, and the rating on KTG is no longer limited by the credit quality of its previous parent, KazMunayGas NC JSC, which the agency rates BB, S&P said.

The transfer, which required the approval of the KTG’s and KMG’s public debtholders, was completed on Nov. 9.

“The positive outlook reflects our view that the likelihood of state support might improve in the next 12 months, as well as the possibility that KTG's funds from operations (FFO) to debt might improve closer to 45% on a sustainable basis, despite plans to increase capital expenditure (capex),” S&P said in a press release.

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