Fitch rates Kazakh MEDNC's Notes BBB-(exp).

By bne IntelliNews January 12, 2014

Fitch has assigned Mangistau Electricity Distribution Company (MEDNC) KZT 2.4bn 8% domestic bond due in 2024 a BBB-(exp) expected local currency senior unsecured rating. The rating is in line with MEDNC's Long-term local currency Issuer Default Rating (IDR) of BBB-, which has a Stable Outlook, as the bond will constitute a direct and unsecured obligation of the company. MEDNC will use the proceeds of the bond issue to finance its investment programme until 2015.

MEDNC's credit profile is supported by its near-monopoly position in electricity transmission and distribution in the Region of Mangistau, one of Kazakhstan's strategic oil and gas regions. It is also underpinned by prospects for economic development and expansion in the region, in relation to both oil and gas and transportation, and by favourable three-year tariffs. MEDNC further benefits from limited foreign exchange risks and from the absence of interest rate risks.

Related Articles

Kazakh court sentences labour union leader to two years in prison

A court in Kazakhstan on May 16 sentenced a labour union leader at the Oil Construction Company (OCC), Amin Eleusinov, to two years in prison after convicting him of ... more

EBRD lends Kazakhstan $180mn for irrigation systems upgrade

The European Bank of Reconstruction and Development (EBRD) has signed loan agreements worth $180mn at the bank’s annual meeting in Cyprus to support a strategic programme to ... more

Kazakh president mulls ban on beards, cropped trousers in move against religious extremism

Kazakh President Nursultan Nazarbayev raised the issue of banning Islamic attire and beards associated with extremism at a meeting with Kazakhstan’s Spiritual Board of Muslims on April 19, the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss