Standard & Poor's Ratings Services said today that it has withdrawn its 'B+' ratings on PetroKazakhstan Inc. (PKZ), a vertically integrated oil company operating in Kazakhstan because the information provided by the company is too limited to maintain surveillance.
At the time of the rating withdrawal, the ratings were on CreditWatch with positive implications where they had been placed on Aug. 23, 2005, following a takeover bid by China National Petroleum Corp. (CNPC). After the takeover was completed in October 2005, PKZ's securities listing was terminated and reporting stopped. PKZ's debt is subject to prepayment in the course of the change-of-control and tender price offers.
The rating withdrawal does not indicate a deterioration in PKZ's credit quality. Rather, it reflects the fact that Standard & Poor’s does not have enough information on the company’s current financial profile, CNPC's strategy with regard to PKZ, the extent to which PKZ's operations and financials will be integrated into the broader group structure, and any changes to PKZ’s financial policy after the takeover. As a result of the withdrawal, PKZ will no longer be subject to Standard & Poor's review.