OREANDA-NEWS. October 18, 2010. Fitch Ratings has maintained the 'C' Long-term Issuer Default Rating (IDR) of Astana Finance Leasing JSC (AFL) on Rating Watch Negative (RWN), reflecting the high probability that the company's obligations will soon be subject to a coercive debt exchange. A full list of rating actions is provided at the end of this commentary, reported the press-centre of KASE.

AFL's Long-term IDR was downgraded to 'C' and placed on RWN on 20 May 2009 following the announcement of default by its parent, JSC Astana Finance (AF, rated 'RD'). Based on information provided by AF's management, Fitch understands that AFL has so far continued to service its third party debt, and  the agency has therefore not downgraded AFL to 'RD'. Fitch has also been  informed that none of AF's creditors have approached AFL with claims in respect to the guarantees which AFL provided on AF's borrowings. At the same time, Fitch notes that since the announcement of default by AF, AFL has not been servicing its borrowings from the parent (which comprised 71% of AFL's total funding base at end-H110), due to a standstill arrangement on all intra-group settlements.
  
AF is a Kazakhstan-based non-bank financial institution headquartered in the capital, Astana. At present, the state-owned National Welfare Fund, Samruk-Kazyna, controls a 39.75% in AF. AFL is wholly owned by AF and was set up in 2005 to book the group's leasing business.

The rating actions on AFL are as follows:

Long-term foreign currency IDR: 'C', RWN maintained
Short-term foreign currency IDR: 'C', RWN maintained
Long-term local currency IDR: 'C', RWN maintained
Support rating: affirmed at '5'
National Long-term rating: 'C(kaz)', RWN maintained

AF's ratings are as follows:             

Long-term foreign currency IDR: 'RD'
Short-term foreign currency IDR: 'RD'
Long-term local currency IDR: 'RD'
Individual rating: 'F'
Support rating: '5'                     
Support rating floor: 'NF'
National Long-term rating: 'RD(kaz)'.