Kazakhtelecom announces affirmation of ratings by agency Standard & Poor's and review of outlook from Stable to Positive

03.10.14 14:48
/KASE, October 3, 14/ – Kazakhtelecom JSC (Astana), whose securities are officially listed on Kazakhstan Stock Exchange (KASE), has by an official letter informed KASE of the following: quote International rating agency Standard&Poor's has reviewed the outlook on ratings of Kazakhtelecom JSC from "Stable" to "Positive" and affirmed its long-term rating at level "ВВ". At the same time the rating agency increased the Company rating on the national scale from "kzA" to "kzA+". According to the press-release of the rating agency, the improved outlook follows the approval of the new strategy for development of the mobile business, which is considered as a sign of improved corporate governance at Kazakhtelecom. The agency says that the "positive" forecast reflects the probability of an increase in the Company rating within the next 12-18 months in case the Company continues to follow the adopted strategy on capital expenditures maintaining the current levels of leverage and liquidity. Standard&Poor's also pointed out strong positions of Kazakhtelecom JSC on the fixed line communications market in Kazakhstan, the stable "pillow" of liquidity, supposed to be used for funding capital expenditures over the next few years, moderate level of debt burden maintaining a sustainable balance. unquote The report of agency Standard&Poor's of October 2, 2014 in English provided by Kazakhtelecom JSC is available on KASE website at http://www.kase.kz/files/emitters/KZTK/kztk_reliz_021014.pdf [2014-10-03]