Fitch Ratings has assigned Kazakhstan's Real Estate Fund Samruk-Kazyna (REFSK) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of 'BB+' and a National Long-Term Rating of 'AA(kaz)'.
"The Outlooks are Stable. Fitch has also assigned REFSK a Short-Term Foreign Currency IDR of 'B'," said the report.
The ratings are based on Fitch's view of REFSK as a government-related entity (GRE) under the agency's exposure draft "Government-Related Entities Rating Criteria" and reflect the entity's linkage with the Republic of Kazakhstan (BBB/Stable/F2), which is the ultimate sponsor of the company.
Tight links with the state are reflected in the ultimate 100 percent ownership of REFSK by the Kazakhstan government, its status as a state agent in the provision of affordable housing with funding from the government, as well as in the strong control and oversight by the state.
The two-notch rating differential factors in the moderate financial impact on the government of REFSK's default and the existence of few other state-mandated companies in the sector, which could impact the timeliness of emergency support to REFSK in case of need.
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