15:08 02-09-2014
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
15:01 Kyrgyzstan's current account balance positive in Q2 201414:49 Mandatory Health Insurance Fund to be launched in Kazakhstan14:46 Iraq crisis: Islamic State accused of ethnic cleansing14:39 Petroleum crisis in Kazakhstan: Energy Minister calls on citizens to save fuel and use public transport14:15 Inspection of cars no older than 7 years to be canceled in Kazakhstan, Nazarbayev orders14:00 Nazarbayev orders Government to make sure time for customs clearance reduces by end of 201413:46 Kazakhstan not to stop funding its social obligations - Nazarbayev13:31 Kyrgyz Labor Minister, German Development Bank discuss situation at domestic employment market13:31 Nazarbayev speaks of distribution of powers among reorganized Government13:16 Summer break for Kazakh MPs to reduce, Nazarbayev proposes13:15 Kyrgyz Economy Minister says halal-compliant meat processing requires more investments13:07 Asian stocks fall, ECB uncertainty continues to pummel euro13:03 Kyrgyz Embassy in Germany presents country's cultural heritage, national cuisine and tourist potential12:59 Lack of gasoline can cause price spike in Tajikistan12:51 12 children from Kyrgyzstan with congenital heart defects to receive free treatment in South Korea12:49 Kyrgyzstan imports 1,300 light motor vehicles for $26.6 million in H1 201412:45 UN to investigate alleged human rights abuses by ISIS12:33 Oil Traders Association predicts growth in fuel prices up to 5% this month12:20 Prospects of Tajik-Iranian economic cooperation discussed in Dushanbe12:16 Turkmenistan starts construction of Ashgabat-Turkmenbashi highway
Astana
+17° C
Ashgabat
+35° C
Bishkek
+31° C
Dushanbe
+26° C
Tashkent
+33° C
exchange rates
 
69.59
52.95
8.62
1.42
239.82
182.00
29.63
4.94
6.53
4.97
0.81
0.13
3127.51
2348.02
381.74
65.22
3.75
2.85
0.46
0.08

© 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