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Fitch Affirms Qazaqstan Investment Corporation JSC's Ratings at 'BBB-'. Outlook Stable

Дата публикации: 2024-09-25

The affirmation reflects Fitch's view of 'Extremely likely' extraordinary support from Kazakhstan (BBB/Stable) for QIC due to its tight integration with the state and consolidated role of a unified alternative investment platform in the country. An extraordinary support from Kazakhstan to QIC would be 'Extremely likely' in case of need, reflecting a support score of 35 (out of a maximum 60) under Fitch GRE criteria. In 2022-2023 QIC consolidated a role of key state fund in promotion and development of equity investments in Kazakhstan. In January 2023 QIC officially received its new name, finalising the re-organisation of the investment segment under QIC parent JSC National Management Holding Baiterek (BBB/Stable) with merger of other subsidiaries to QIC. To fund QIC investments the state injects equity, which totalled KZT147.8 billion at end-2023. Additionally, state provided low-cost long-term debt financing for development projects in agriculture and construction of a gas pipe-line, totalling KZT53.0 billion at end-2023. Fitch expects government-related resources to remain the dominant funding source over the medium term and QIC to have sustainable access to direct and indirect (via Baiterek and/or other quasi-state institutions) state funding The fund implements projects from renewable energy to utilities, food processing, infrastructure and natural resources, aiding to economic diversification away from current concentration on carbon-hydrates. Fitch deems these projects to have high socio-political significance for the state. Fitch analysts highlight QIC's potential default would temporarily endanger the government's programmes and undermine its efforts over the past decade to develop a private-equity infrastructure in Kazakhstan. It is worth noting that according to Fitch's rating criteria on the national scale, the national QIC rating was also affirmed at 'AA+(kaz) '.