ASTANA, Kazakhstan, December 1. S&P Global Ratings has upgraded the long-term issuer default rating (IDR) of KazTransOil to BBB- with a Stable outlook, Trend reports via KazTransOil.
The rating is aligned with that of KazTransOil's parent company, KazMunayGas National Company, as well as the sovereign rating of Kazakhstan, which is also rated BBB-.
According to the S&P, the decision to raise the rating was driven by KazTransOil's low debt burden, its ability to generate stable free cash flow, and its strategic importance to the government of Kazakhstan as the national operator of main oil pipelines.
KazTransOil is Kazakhstan's leading oil pipeline company, providing transportation services for domestic markets, transit, and exports. The company operates a total pipeline length of 5,196 km. Oil transportation through the pipelines is supported by 36 pumping stations, 68 oil heating furnaces, and an oil storage tank farm with a significant capacity.
Additionally, oil transshipment is carried out through five railway oil loading racks and specialized equipment for loading oil onto tankers, which is installed at 3 active berths of the marine oil terminal at the Port of Aktau.
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