Fitch cuts QazaqGaz, KazTransGas

Fitch Ratings said it downgraded JSC National Co. QazaqGaz's long-term foreign- and local-currency issuer default ratings to BB+ from BBB-, and removed the ratings from under criteria observation.

The agency also lowered the ratings for subsidiaries Intergas Central Asia JSC and KazTransGas Aimak JSC to BB+ from BBB-. It also lowered their senior unsecured debt ratings to BB+ from BBB-

The downgrade reflects QG’s lower stand-alone credit profile to b from bbb-. “Our revision of QG's SCP reflects its drastically weakening consolidated profitability on the back of (i) practically discontinued gas transit from Central Asia to Russia, (ii) still loss-making domestic gas tariffs, and (iii) growing domestic natural gas consumption in Kazakhstan that will constrain gas exports to China and result in increased gas imports from Russia,” Fitch said in a press release.

The outlooks are stable.

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