ASTANA, Kazakhstan, January 17. Fitch Ratings has affirmed Kazakhstani JSC National Atomic Company Kazatomprom's Long-Term Issuer Default Rating (IDR) at 'BBB' with a Stable Outlook, Trend reports
The affirmation highlights Kazatomprom's robust financial standing and our anticipation that EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) gross leverage will stay under 1.0x during 2024-2027, supported by a prudent financial strategy and a competitive low-cost position on the global cost curve.
The rating indicates Kazatomprom's scale, showcasing an EBITDA exceeding $1 billion based on a mid-cycle uranium price assumption of $50 per pound (lb). It highlights its status as a global leader in uranium production, along with contracted production volumes and enduring relationships with utilities.
The ratings are constrained by limited diversification both as a
single commodity producer in a niche market and geographically and
exposure to uranium price volatility. We rate Kazatomprom on a
standalone basis as we view ties with Kazakhstan (BBB/Stable), its
ultimate owner with a 75 percent shareholding, as limited under our
Government-Related Entities (GRE) Rating Criteria.
To note, Fitch Ratings Inc. is an American corporation known mainly
as a rating agency. Along with Standard & Poor's and Moody's, it is
a member of the so-called “Big Three” international rating
agencies.It specializes in providing the global credit markets with
independent and forward-looking credit assessments, analytical
research, and data.
