Standard & Poor's releases annual credit rating review of KazTransOil
/KASE, August 8, 2019/ – KazTransOil (Nur-Sultan), whose shares are officially 
listed on the Kazakhstan Stock Exchange (KASE), has provided KASE with the press 
release dated August 8, 2019, which states as follows:


The international rating agency, S&P Global Ratings (hereinafter – the Agency), 
has published an annual credit rating review of “KazTransOil” JSC (hereinafter –
the Company) within the framework of which its basic scenario was updated. The 
Agency predicts stable operating performance and good creditworthiness of the 
Company in 2019. The rating by the Agency remains unchanged from the moment of 
its increase to the level “BB” with the forecast “Stable” in November 2018.

The Agency notes that the Company maintains a high level of financial flexibility  
due to its significant market share, good competitive position, lack of debt at 
the  company level, as well as adequate cash management that allows generating  
positive cash liquidity to pay dividends and ensure all existing investment 
projects  of the Company.

In addition, the current rating of the Company is still limited by the rating of
the parent structure - “NC “KazMunayGas” JSC (hereinafter – KMG) (“BB”, with the  
forecast “Stable”), even though the Agency assesses Company’s creditworthiness 
at the level of “bb+”. The Company cannot be protected from the risks associated  
with its belonging to the KMG group; therefore, the Agency does not assign a 
subsidiary company a rating higher than the level of the parent structure.

The Agency informs that a positive action with respect to the Company's rating
is possible in case of a similar rating action with respect to KMG.