ASTANA, Kazakhstan, October 21. Fitch Ratings has affirmed Kazakhstan-based Samruk-Energy's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a stable outlook, Trend reports.
As the Fitch noted, the affirmation reflects continued application of 'top-down minus two' notch approach from Kazakhstan's rating (BBB/Stable) under Fitch's Government-Related Entities (GRE) Rating Criteria.
Fitch Ratings has revised the company's Standalone Credit Profile (SCP) down to 'b+' from 'bb-' and simultaneously improved the government support score by revising the Support Track Record factor to 'Very Strong' from 'Strong'. Overall, the rating construction is unchanged.
Fitch's rating case now includes Samruk-Energy's upcoming gasification projects in Almaty region. These projects require high capex, which will be debt-funded, increasing leverage and weakening the SCP. This is offset by stronger state support in the form of state guarantees for the projects' debt, equity injections and asset contributions. We expect a positive operational performance for the business.
Among key drivers, Fitch notes debt-funded capex increase, weaker SCP, 'very strong' support track record, strong state links, incentive to support, emerging regulation, healthy tariffs growth, healthy investment tariffs that benefit EBITDA and flat tariffs from existing assets.
