Fitch assigns Beineu-Shymkent Gas BBB-

Fitch Ratings said it assigned Beineu-Shymkent Gas Pipeline LLP a long-term issuer default rating of BBB- and a national long-term rating of AA+(kaz). The outlook is stable.

“BSGP’s ratings reflect our assessment of the strong linkage between the company and its immediate parent KazTransGas (KTG, BBB-/Stable). KTG exerts extensive operational and financial control over BSGP and provides large financial support via intercompany loans and guarantees,” said Fitch in a press release.

As of September, BSGP’s debt stood at $1.2 billion and mostly comprising a $700 million bridge loan and $400 million equivalent shareholder loan. Fitch expects the bridge loan to be refinanced in the first half of this year with a combination of fixed-rate amortizing tenge-denominated bonds and loans guaranteed by KTG and potentially by KazMunayGas, which is KTG’s parent. Bond terms are subject to finalization and market conditions. This should alleviate significant FX exposure, the agency said.

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