Fitch Rates KazAgroFinance's Upcoming Local Bonds 'BB+(EXP)'
The tenge-denominated Series 2 bonds are expected to be issued under the company's second bond programme for KZT8bn and with a tenor of five years.
KEY RATING DRIVERS
The Series 2 issue's expected ratings are in line with KAF's outstanding local senior unsecured bond ratings and at the same level as its 'BB+' Long-Term Local Currency Issuer Default Rating (IDR) and 'AA(kaz)' National Long-Term Rating. KAF's ratings reflect Fitch's view of the moderate probability of state support to the company given its policy role in provision of state-subsidised financial leasing and project financing to the agricultural sector.
The issue ratings would likely change in tandem with KAF's :Long-Term Local Currency IDR and National Long-Term Rating.
KAF's other ratings are as follows:
Long-Term Foreign and Local Currency IDRs: 'BB+', Outlook Stable
Short-Term Foreign Currency IDR: 'B'
National Long-Term Rating: 'AA(kaz)', Outlook Stable
Support Rating: '3'
Support Rating Floor: 'BB+'
Senior unsecured debt ratings: 'BB+'/'AA(kaz)'
Series 1 bond issue expected ratings: 'BB+(EXP)'/'AA(kaz)(EXP)'