London, 24 December 2015 -- Moody's Investors Service has today said that it views as credit neutral for Kazakh national gas pipeline operator JSC KazTransGas (KTG, Baa3 stable) and its parent KazMunayGas NC JSC (KMG, Baa3 stable) an early repayment of its $400 million syndicated loan, as announced on 22 December 2015. This loan has been substituted by tenge-denominated borrowing from the company's parent, KMG. This transaction will reduce KTG's exposure to external creditors and US dollar debt, eliminating the risks of non-compliance with external debt covenants due to the company's US dollar denominated debt, which has grown owing to tenge depreciation.
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