▲ Up
 
18:26 25-05-2017
MAIN АКИpress CA-News
ADVERTISE WITH US SUBSCRIBE
KazakhstanKyrgyzstanMongoliaTajikistanTurkmenistanUzbekistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
KazMunayGas's S&P rating unaffected by potential full acquisition of KMG EP
15:36, 31 July 2014, 550

AKIPRESS.COM - aaf477fffa47e38537afe7f5ee1b6eba Standard & Poor's Ratings Services said July 30 that its ratings on Kazakh oil company KazMunayGas NC JSC and KazMunaiGas Exploration Production JSC are unchanged following the preliminary approach by KMG to the independent directors of its 63%-owned subsidiary KMGEP about a possible offer to acquire the remaining outstanding shares in KMGEP.

"We understand that this is only a preliminary approach; KMG has not made a final offer. If the deal proceeds and the acquisition is adequately refinanced, we expect that the transaction would not affect our current ratings on KMG and KMGEP. KMG's interest in fully acquiring KMGEP supports our view of KMGEP as a core subsidiary of KMG, a government-controlled vertically integrated oil company"

"As per our methodology, our rating on KMGEP is equalized with the rating on the parent. Our rating on KMG continues to reflect our expectation of an "extremely high" likelihood of timely and sufficient extraordinary government support from Kazakhstan. Should the transaction proceed, we currently anticipate that it would not affect KMG's stand-alone credit profile, which we currently assess at 'b+'"

"Although the offer may increase short-term liquidity needs at the parent level, we project that liquidity and leverage would remain manageable. At this stage, KMG has indicated an offer price of about $2.8 billion for all the outstanding shares. This may increase KMG's gross debt at least temporarily, but the impact is offset by access to large cash balances at KMGEP of $4.15 billion and essentially no debt as of March 31, 2014"

"Currently, we don't net this cash from KMG's debt, because it is at the subsidiary level and not directly accessible for the parent. Under Standard & Poor's policies, only a Rating Committee can determine a Credit Rating Action (including a Credit Rating change, affirmation or withdrawal, Rating Outlook change, or CreditWatch action). This commentary and its subject matter have not been the subject of Rating Committee action and should not be interpreted as a change to, or affirmation of, a Credit Rating or Rating Outlook."


Full access to all news articles in English

1 month2000 somsubscribe
year20000 somsubscribe
These subscription fees are for private individuals only. Please contact us via phone +996 (312) 900-776 or email info@akipress.org for corporate subscription inquiries
Twitterfacebookprint
LATEST NEWS
17:40 Deputy Speaker of Parliament of Kyrgyzstan, members of Milli Majlis of Azerbaijan discuss cooperation prospects17:26 World Bank, Ulaanbaatar to partner to improve capital investment planning, public transport financing17:20 Woman swept away with horse by river found dead in Chui region17:20 IMF approves $5.5 bln bailout package for Mongolia17:18 Manchester United won Europa League17:15 Kashagan oil output reaches 3 mln tons17:03 Russia moves Iskander missile systems for drills to Tajikistan for first time16:55 Kyrgyz Parliament passes 1st reading of MoU with UAE on mutual visa exemption of diplomatic passport holders16:48 5yo child dies on way to hospital after fallfrom 5th floor balcony in Bishkek16:47 Kazakh Senators ratify readmission deal with Kyrgyzstan16:28 Central Bank of Tajikistan seeks to accelerate de-dollarization process16:25 Incheon, Mongolia to enhance ties for joint climate response16:24 Newly discovered vulnerability raises fears of another WannaCry16:15 Police stop high school graduates driving a convoy of cars15:50 Kyrgyz-born girl plays lead in Finnish film Tsamo15:45 Perpetrators use new money laundering schemes: Federal Financial Monitoring Service of Russia15:19 Taiwan's top court rules in favour of same-sex marriage14:53 Mirziyoyev, Foreign Minister of UAE discuss cooperation14:49 Kyrgyzstan has to reconcile legislation in the field of combating money laundering and financing terrorism by November: EAG14:38 New center of Bishkek with 2 skyscrapers worth $160 million planned to be constructed
© AKIpress News Agency - 2001-2017. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to 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