S&P confirms "KazAgro" rating; Outlook "Stable"
Astana. April 30. KazTAG - Standard & Poor’s Ratings Services assigned its ‘BBB+’ long-term and ‘A-2′short-term issuer credit ratings to KazAgro.
"Standard & Poor’s Ratings Services assigned its ‘BBB+’long-term and ‘A-2′short-term issuer credit ratings and ‘kzAAA’Kazakhstan national scale rating to KazAgro National Management Holding JSC, the primary vehicle for providing government financial support to and developing the agricultural sector and rural areas. The outlook is stable," reads the message.
KazAgro’s “integral” link to the government. The state owns 100% of KazAgro, makes regular capital injections, and supports it with budget lending at favorable terms, which we expect to continue."
We equalize the ratings on KazAgro with the ratings on its sole owner, the Republic of Kazakhstan, based on our assessment that there is an “almost certain” likelihood that the government would provide timely and extraordinary support sufficient to service all debt, should the need arise," reads the message.
KazAgro’s “critical” public policy role as the primary vehicle for providing government financial support to and developing the agricultural sector and rural areas, obligations, although the Ministry of Agriculture issued a letter of support for the holding in April 2013.
The group credit profile of KazAgro is ‘b+’ and balances the company’s “adequate” capitalization and strong market position with its exposure to a cyclical and risky sector, directed lending, and tight liquidity profile.
The stable outlook reflects the agency's outlook on the Republic of Kazakhstan and expectation that the assessment of KazAgro’s “critical” public policy role and “integral” link with the government is unlikely to change.