13:50 23-10-2014
MAIN Russian
About us On-line subscription
KazakhstanTajikistanUzbekistanKyrgyzstanTurkmenistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
S&P affirms Kazakhstan-based ENRC 'BB' ratings, outlook negative

Bishkek (AKIpress) - 53495709a06ea8310ce719826d7bbdd9 Standard & Poor's Ratings Services affirmed its 'B' long-term and 'B' short-term corporate credit ratings of Eurasian Natural Resources Corporation Ltd (ENRC), a Kazakhstan-based mining group, outlook is negative, S&P reported on May 14.

ENRC completed its leveraged buyout and delisted from the London Stock Exchange and Kazakh Stock Exchange in the fourth quarter of 2013. As a result of this buyout, ENRC's adjusted total debt has increased substantially to about $8 billion as of December 31, 2013.

The debt increase is largely related to a $1.7 billion acquisition financing that the company received from Russian state-owned VTB bank. VTB and Sberbank are the lenders of the bulk of ENRC's debt.

"We continue to view ENRC's liquidity as "less than adequate," given the high debt maturities from the fourth quarter of 2015. We also view ENRC's access to funding as constrained by risks related to an ongoing Serious Fraud Office investigation," the agency said.

The negative outlook reflects the probability of a downgrade over the next six months if management is not able to address ENRC's currently high leverage. This will depend on new information the agency expects to receive from management over the next three to six months regarding ENRC's debt-reduction strategy.

Any perceived weakening of bank support from Sberbank or VTB would also result in rating downside.

S&P might also lower the rating if the final audited IFRS-based report for fiscal-year 2013 includes material credit-negative factors that are as yet undisclosed.

In December 2013, S&P affirmed its 'BBB+/A-2' long- and short-term foreign and local currency sovereign credit ratings on Kazakhstan. The outlook is stable.

Also, the agency has affirmed its 'BBB-' long-term corporate credit rating on Kazakhstan's National Oil and Gas Company KazMunaiGas (KMG), and the outlook is stable.

S&P has affirmed its 'BB+' long-term corporate credit ratings on Kazakh gas utility company KazTransGas (KTG) and its 100-percent owned gas pipeline operator Intergas Central Asia JSC (ICA), and the outlook on both companies is stable.


Twitterfacebookprint
16:55 14.05.2014
LATEST NEWS
13:22 Oil price lower $80 not critical for budget of Kazakhstan – Finance Minister13:04 Fearing possible mass anti-government protests, Tajik authorities toughening legislation - report12:51 Afghan opium poppy cultivation hits all-time high12:46 Kazakhstan attracts Japanese investors - Minister12:34 Nokia earnings top estimates as network sales rise11:50 Kazakhstan and Japan should develop cooperation on car manufacturing – PM11:45 President of Turkmenistan, President of Korean Dongil Construction Corp. discuss construction project of Ashgabat11:36 Industrial production slowdown expected in Kazakhstan in 2015 – Economy Minister11:34 Kyrgyzstan informs UN Secretary General's Representative about difficulties of delimitation of state borders with Uzbekistan, Tajikistan11:20 Turkmenistan, Uzbekistan vow to expand trade, economic ties11:19 Kyrgyzstan asks more support from UN in countering illicit drug trafficking, terrorism, extremism11:18 New leadership of Total oil company named as CEO Margerie dies in plane crash11:12 Jerusalem car 'attack' kills baby at rail station11:06 Ambassador of Kazakhstan presents his credentials to Romanian President11:03 Dushanbe, Moscow agree to expand supply of agricultural products from Tajikistan11:02 President Atambayev reckons on cooperation with UN in conduct of honest parliamentary elections11:01 New deal in sight for Russia's radar shield in Kazakhstan10:54 Moscow worried over Moldova’s ruling against opposition to European integration10:46 Parliament of Kazakhstan ratifies good-neighborliness agreement with Russia10:42 Fire extinguished in one of buildings of Kyrgyz Technical University
Astana
+8° C
Ashgabat
+22° C
Bishkek
+18° C
Dushanbe
+19° C
Tashkent
+17° C
exchange rates
 
71.14
56.07
9.04
1.37
229.75
180.99
29.59
4.42
6.33
4.99
0.78
0.12
3084.28
2367.40
385.74
61.13
3.62
2.85
0.47
0.07

© AKIpress News Agency - 2001-2014
Use of the AKIpress.com materials must be accompanied by a hyperlink to www.akipress.com
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75