Fitch rates Astana Finance eurobond BB+

Fitch Ratings said it assigned Kazakhstan-based Astana Finance BV's upcoming eurobond due 2011 an expected BB+ long-term rating. The bond will be guaranteed unconditionally and irrevocably by JSC Astana Finance (rated issuer default BB+) and its subsidiary, JSC Leasing Co. Astana-Finance.

Fitch said it has been informed that JSC Leasing Co. Astana-Finance is to be added as a second guarantor to the company's outstanding $125 million eurobond due 2009, rated BB+ and guaranteed by Astana Finance.

The terms of the company's new notes state that the guarantors' obligations under their guarantees will rank at least equally in right of payment with all their other respective present and future unsecured and unsubordinated obligations, save those preferred by relevant bankruptcy or liquidation laws.

The ratings reflect Fitch's opinion that there is a moderate likelihood that support would be made available to Astana Finance from the municipality of Astana or, potentially, the Kazakhstani sovereign (rated foreign-currency issuer default rating BBB), should support be required.

Any movement in the company's issuer default rating would reflect a change in Fitch's opinion regarding the propensity or ability of the municipality of Astana and/or the Kazakhstani sovereign to provide timely support to Astana Finance.

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