Milan, March 12, 2010 -- Moody's Investors Service today placed Kazpost JSC ("Kazpost") global scale rating of Baa3 and the national scale rating of Aa3.kz under review for possible downgrade. The review was prompted by Moody's concerns that ongoing stress in the nation's economy might overtime result in the government having to become more selective in its allocation of support to its corporate state-owned enterprises.
The rating review process will focus on the high government support assumptions currently incorporated into the rating and Moody's expects to conclude the review over the next few weeks. The review will consider factors such as (i) the likelihood and extent of state intervention in case of need, (ii) the capacity of the government to intervene and support the company in a timely manner, and (iii) the size of potential Kazpost needs in relation to the government's financial resources.
Moody's remains comfortable with the underlying credit quality of Kazpost as indicated by the current baseline credit assessment (BCA) of
15 (which is equivalent to a B2 rating) which remains unchanged and is not part of the review process.
In light of the current high support built into the rating, any reduction of Moody's perception of the likely support going forward could result in a multi-notch downgrade.
The last rating action on Kazpost was on 7 July 2009 when ratings were confirmed at Baa3 and Aa3.kz.
The principal methodology used in rating Kazpost was the Moody's Postal and Express Deliveries Companies rating methodology, published December 2008, which can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating Kazpost can also be found in the Rating Methodologies sub-directory on Moody's website.
Kazpost is the Kazakh national postal operator active in traditional postal services. It also participates in a wide range of financial and other services, including express deliveries, logistics and transportation services. The company has approximately 22,000 employees and 3,700 post offices around the Republic of Kazakhstan and during the FYE December 2008 reported approximately KZT15 billion of revenues.