LONDON, May 5 /PRNewswire/ -- As part of the process of harmonizing
ratings between Fitch IBCA and Duff & Phelps Credit Rating Co. (DCR), DCR has
lowered the Republic of Kazakhstan's long-term foreign currency sovereign
rating to 'BB-' (Double-B-Minus) from 'BB' (Double-B) and its long-term local
currency (tenge) sovereign rating to 'BB' (Double-B) from 'BB+'
(Double-B-Plus).
Kazakhstan's sovereign ratings continue to be supported by a comparably
solid policy framework, which has been strengthened since 1998 by the
authorities` response to adverse external developments. Furthermore, the
country's overall commitment to policy stability is underpinned by its recent
agreement with the IMF on a three-year funding facility. Kazakhstan's ratings
remain constrained by macroeconomic volatility, resulting from its dependence
on commodity production and exports.
DCR became a subsidiary of Fitch IBCA on April 12, 2000, and it is
expected that the combined companies will merge by late May 2000. As
previously announced, the combined analytical staffs of Fitch IBCA and DCR are
working together to harmonize the ratings and rating approach for the new
company. As part of this process, analysts from Fitch IBCA participated with
analysts from DCR as part of the joint committee that determined this ratings
action. Consequently, it is not expected that any further rating action will
be taken when a single set of ratings is issued at the merger of DCR and Fitch
IBCA.
For additional research on Kazakhstan, visit DCR's web site at
http://www.dcrco.com (Quick Search: Kazakhstan). DCR's research is also
available on Bloomberg at DCR, First Call's BondCall Direct/Research
Direct at http://www.firstcall.com and Multex at http://www.multex.com, as
well as through other third-party providers.
SOURCE Duff & Phelps Credit Rating Co.
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Related links:
http://www.dcrco.com
http://www.firstcall.com http://www.multex.com
CONTACT:
Nick Eisinger, +44-20-7417 7117,
neisinger@dcrco.com, or Jaime Sanz, +44-20-7417 7936,
sanz@dcrco.com, both of DCR
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