BAKU, Azerbaijan, October 16. Fitch Ratings has
published a senior unsecured long-term rating of 'BBB' for the $1.5
billion medium-term note (MTN) program of Kazakhstan's Sovereign
Wealth Fund Samruk-Kazyna JSC, according to the agency's
report.
The program's rating is equal to Samruk-Kazyna's Long-Term
Issuer Default Ratings (IDRs), which are 'BBB' with a Stable
Outlook.
The MTN program allows the fund to issue senior unsecured and
unsubordinated debt notes in various currencies and with different
maturities.
Fitch said the program's rating reflects the fact that the notes
will constitute direct, general, unconditional, unsubordinated and
unsecured obligations of Samruk-Kazyna. They will rank equally with
the fund's existing and future unsecured and unsubordinated
obligations.
The program includes standard provisions such as
cross-acceleration, a negative pledge and a change-of-control put
option for investors. The notes also become immediately repayable
if Kazakhstan, rated 'BBB' with a Stable Outlook, takes any action
to readjust or defer any of its obligations. English law governs
the program and the notes issued under it.
The net proceeds will be used for general corporate purposes.
These may include providing funding to Samruk-Kazyna's
subsidiaries, which may use the funds to support activities across
various economic sectors, including investment and export
development, trade finance and the refinancing of existing debt
obligations.
The program's rating is driven by and equalized with
Samruk-Kazyna's IDRs, as notes issued under the program will remain
the fund's senior unsecured and unsubordinated obligations.
Samruk-Kazyna is Kazakhstan's national strategic holding
company, which holds stakes in more than 60 companies operating in
sectors including natural resources, railways, transport, energy,
infrastructure and postal services.
