Fitch lifts KazTransOil view to positive

Fitch Ratings said it changed Kazakhstan-based JSC KazTransOil's outlook to positive from stable. Its issuer default rating is affirmed at BB+ and short-term rating at B.

The positive outlook foresees a gradual improvement in KazTransOil's credit ratios as the company begins to generate revenue from the newly completed Atasu-Alashankou pipeline and further reduces debt. Higher cash flow from operations, combined with lower capital expenditure, is expected to return the company to a positive free cash-flow position in 2006, the agency said.

KazTransOil's issuer default rating is supported by the strategic importance of the company to Kazakhstan's oil transportation infrastructure. It owns and operates 6,486 kilometers of oil pipelines and controls at least 60% of the total oil transportation volume.

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