S&P lifts KazTransOil

Standard & Poor's said it raised its long-term issuer credit and senior unsecured debt ratings on KazTransOil (KTO) to BB+ from BB.

The outlook is stable.

S&P said the upgrade reflects the growing strategic importance of KTO to the Kazakh government and the stronger implicit and explicit governmental support to KTO and its parent, the 100% government-owned KazMunaiGas (KMG) oil-and-gas group.

The agency noted the upgrade also recognizes the gradual improvement of KTO's market position and positive regulatory changes.

The ratings on KTO continue to remain constrained, however, by the company's lack of transparent regulation, the relatively poor state of the company's assets by international standards and the operational demands of expanding the pipeline network to allow exports to China, S&P added.

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