Fitch Affirms JSC National Atomic Company Kazatomprom at ‘BBB-‘; Outlook Stable

Fitch Ratings – Warsaw – 19 Mar 2021: Fitch Ratings affirmed Kazakhstan-based JSC National Atomic Company Kazatomprom’s (Kazatomprom) Long-Term Issuer Default Rating (IDR) at ‘BBB-‘ with Stable Outlook.

The rating affirmation reflects Kazatomprom’s continuing strong financial profile, benefiting from higher uranium spot prices and demand. Kazatomprom maintains its strong global market position, as well as its first quartile low-cost production position in the global cost curve and continues to see fairly stable demand from the utilities sector. However, its ratings are constrained by limited diversification and integration, small scale based on revenue size, exposure to uranium-price volatility and potential for substantial dividend payments.

Fitch rates Kazatomprom based on its Standalone Credit Profile (SCP) of ‘bbb-‘, as the agency views its links with its ultimate shareholder, Kazakhstan (BBB/Stable), as limited under Fitch’s Government-Related Entities Rating Criteria. KEY RATING DRIVERS

Low Financial Leverage: Fitch expects the company to maintain a conservative financial profile, […]

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