S&P downgrades KazAgro

Standard & Poor’s said it lowered the long-term issuer credit ratings on KazAgro National Management Holding to BB+ from BBB-, along with the short-term issuer rating to B from A-3.

S&P also said it lowered KazAgro’s Kazakhstan national scale ratings on to kzAA- from kzAA.

The outlook is negative.

The downgrades follow a similar downgrade of the sovereign ratings on Kazakhstan, the agency said.

The ratings consider the likelihood of extraordinary government support to the consolidated KazAgro group as almost certain as the state owns 100% of the holding company, which fully owns its subsidiaries, S&P said.

The company has a critical public policy role as the government’s primary vehicle for providing financial support to the agricultural sector, the agency said.

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