ASTANA, Kazakhstan, September 17. Moody's Ratings (Moody's) has upgraded the Insurance Financial Strength Rating (IFSR) of KazakhExport EIC JSC (KazakhExport) to Baa1 from Baa2, with a stable outlook, the Moody’s told Trend.
The rating upgrade follows Moody's recent upgrade of the long-term ratings of Baiterek National Management Holding JSC (Baiterek), KazakhExport's parent company, to Baa1 from Baa2, and the upgrade of Kazakhstan’s sovereign debt rating to Baa1 from Baa2.
KazakhExport’s Baa1 IFSR benefits from a three-notch uplift from its standalone credit profile of Ba1, due to the implicit and explicit support from its direct parent and Kazakhstan. This support is underpinned by the government’s full ownership of KazakhExport through Baiterek and a history of capital injections and state guarantees covering KazakhExport’s insurance portfolio.
The company’s IFSR could be upgraded in case of an upgrade of the rating of Baiterek and the sovereign government bond rating. The rating pressure could arise if Moody’s assessment of parental support diminishes or the standalone profile of the company weakens significantly.
Meanwhile, the Moody's has upgraded the long-term issuer rating to Baa1 from Baa2 of Kazakhstan's Sovereign Wealth Fund Samruk-Kazyna, KazMunayGas JSC (KMG), Kazatomprom JSC (KAP), and the Kazakhstan Electricity Grid Operating Company (KEGOC).