S&P: Samruk unchanged

Standard & Poor's said in a report that it does not expect the Kazakh government's establishment of the fully owned state superholding Samruk to have any immediate effect on the credit quality of the rated state-controlled companies to be transferred to its control.

"The proposed arm's-length holding-company structure is unlikely to result in additional government support to state-owned companies or affect the existing level of support and the way such support is provided," said S&P credit analyst Eugene Korovin."

S&P noted that Samruk's involvement in the management of the companies may, however, extend beyond the declared scope of improving efficiency and increasing market capitalization.

"Samruk should gradually replace the government as the major supporter of the subsidiaries, which will make the credit quality of the Samruk subsidiaries more dependent on that of the Samruk group as a whole," said Korovin.

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