Fitch downgrades Samruk-Energy to BB

Fitch Ratings said it downgraded Samruk-Energy JSC's long-term issuer default ratings to BB from BB+ and removed it from rating watch negative.

The outlook is stable.

Fitch said the downgrade reflects the application of its new Government-Related Entities Rating (GRE) Criteria.

Samruk-Energy is rated three notches below its indirect majority shareholder the Republic of Kazakhstan (BBB/stable).

“The notching reflects the status, ownership and control links between Samruk-Energy and the state, as well as support track record and expectations as strong,” the agency said in a news release.

“We also deem the financial implication of GRE's potential default as strong, while we view the socio-political implications as moderate.”

Fitch said it continues to assess Samruk-Energy's standalone credit profile at B.

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