OREANDA-NEWS. Fitch Ratings has assigned Kazakhstan-based KazAgroFinance's (KAF) planned Series 2 senior unsecured bond issue an expected Long-Term rating of 'BB+(EXP)' and National Long-Term Rating of 'AA(kaz)(EXP)'. Assigning final ratings to the issue is contingent on the receipt by Fitch of final documents conforming to information already provided to us by KAF.

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.


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)'