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Recovery Report: Kazakhtelecom (JSC) Recovery Rating Profile Nov 11
Standard & Poors, November 2011
We are updating our recovery analysis on Kazakhstan's largest telecommunications operator Kazakhtelecom (JSC). Our recovery rating on Kazakhtelecom's Kazakhstani tenge (KZT) 45.5 billion unsecured notes is '3', indicating our expectation of meaningful (50%-70%) recovery prospects in the event of default. Our simulated default scenario for Kazakhtelecom projects a payment default in 2016 due to operating underperformance. We calculate a stressed enterprise value of about KZT79 billion at the point of default. We believe that Kazakhtelecom would be reorganized as a going concern in the event of a default. Although the numerical coverage is higher than the 50%-70% range, we cap the recovery rating at '3' due to the unsecured nature of the debt and Kazakhstan's relatively creditor-unfriendly insolvency regime. The...
Companies mentioned in this report are: Kazakhtelecom (JSC)
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis