Fitch affirms KazTransGas

Fitch Ratings said it affirmed KazTransGas' long-term foreign- and local-currency issuer default ratings at BB and its short-term issuer default rating at B.

The outlook for the long-term issuer default ratings is stable.

The agency affirmed JSC Intergas Central Asia's long-term foreign- and local-currency issuer default ratings at BB+, its senior unsecured rating at BB+ and its short-term issuer default rating at B.

Ratings reflect subsidiary ICA's position as a monopoly operator of the gas pipeline network in Kazakhstan, the agency said. KTG is ultimately state-owned through KazMunaiGaz National Co. (BBB-/negative).

Ratings also factor in expectations that OAO Gazprom (BBB/negative), the main counterparty of the companies accounting for about 89% of ICA's fiscal 2008 revenue, will honor its ship or pay obligations in 2010 under a Central Asian gas transit contract, the agency noted.

Ratings also reflect the capital intensity of both companies' operations, Fitch said.

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