Fitch rates Samruk-Energy notes BBB-

Fitch Ratings said it assigned a final foreign-currency senior unsecured rating of BBB- to Samruk-Energy's 3¾% $500 million notes due Dec. 20, 2017.

The company also said it has a long-term foreign-currency issuer default rating of BBB, long-term local-currency issuer default rating of BBB+, short-term foreign-currency issuer default rating of F3, long-term national rating of AAA(kaz), local-currency senior unsecured rating of BBB and national senior unsecured rating of AA+(kaz).

Fitch said it notched the final foreign-currency senior unsecured rating down by one notch from Samruk-Energy's BBB long-term foreign-currency issuer default rating due to the structural and contractual subordination in the group's debt structure.

Secured and prior-ranking debt at the operating company level constituted 61% of group debt and materially exceeded 2x group EBITDA at the end of 2011, the agency said.

Future senior unsecured debt raised at the Samruk-Energy holding company level is expected to be subordinated to other prior-ranking creditors within the group, Fitch said.

The agency said it will monitor the company's planned progress in raising senior unsecured debt and repayment of this prior-ranking debt, thereby reducing the degree of subordination at the holding company level.

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