Fitch Ratings independently upgrades KMG's Credit Rating to BB-, reaffirms the BBB- long-term rating and the stable outlook
On 27 March 2019, the international rating agency Fitch Ratings (the “Agency”) upgraded the credit rating of NC KazMunayGas (the Company or KMG) from B to BB-, independently without support from the Government of Kazakhstan. Also, the Company's BBB- (one notch below the sovereign rating) long-term rating and the stable outlook were reaffirmed.
The company's business profile is supported by significant volume of hydrocarbons produced (255 thousand barrels of oil equivalent per day in 2017; 615 thousands of barrels of oil per day, including volumes produced by companies that are accounted for using the equity method), the integration into more stable segments of transportation and processing / sales, as well as the status of KMG as a national oil and gas company, the Agency reports.
Other factors that served as prerequisites for the upgraded and reaffirmed ratings are improved financial stability, thanks, among other things, to the access to funds of KazMunaiGas Exploration & Production, the commencement of gas exports to China, the completion of major capital-intensive projects, and the increase in oil prices.
The full text of the press release issued by the Agency is available here.