Standard & Poor confirmed on Wednesday the "B" rating for Rompetrol Group long-term credits, according to NewsIn quoting the agency's report. Analysts of the financial evaluation agency shows Rompetrol's rating takes into account the financial support offered by the main share-holder, KazMunayGaz group.
"Rompetrol's rating continues to mostly depend on KMG's support, since the company's crediting profile, appreciated for "CCC+", remains vulnerable. Nevertheless, KMG's intention is to continue to support Rompetrol", S&P analyst Per Karlsson said.
Karlsson said the company's ability to support Rompetrol for a longer time is constrained by the fact that KMG liquidities are with the national banks and the company does not enjoy flexibility in operating these funds.
The negative perspective reflects the company's decreasing capacity of generating liquidities, in the context of difficult 2009 and 2010 conditions. Standard & Poor's believe that a future KMG support is uncertain because the mother-company might be forced to back other subsidiaries considered to have strategic value.
On Tuesday, Standard & Poor's reduced the Kazakh long-term credits from "BBB-" to "BB+" with a stable perspective.