OREANDA-NEWS. December 3, 2010. International rating agency Standard & Poor’s (S&P) has confirmed the GAMMA-6 corporate governance rating of JSC KazMunayGas Exploration Production (“KMG EP” or “the Company”).

In its report S&P notes the strengths of KMG EP’s corporate governance practice: effective work of the independent non-executive directors in balancing the interests of the main shareholder and minority shareholders, as well as thorough monitoring of the Company’s management work. The relationship between KMG EP and its parent company, NC KMG, is legally secured and transparent. The obligation of the parent company to use its preemptive right to acquire the assets and licenses in the interests of KMG EP has been carried out in recent years in full.

S&P evaluates the level of transparency of KMG EP as high. The Company interacts effectively with its investors and regularly updates its three-language website. The Company shows a high level of information disclosure, providing quarterly financial updates that are timely and independently audited to IFRS standard. The shareholders are empowered with a wide range of rights, successful risk management systems are implemented, and there are effective procedures for preparing and holding shareholder meetings.

S&P analysts consider the preferred shares listing and the buyback programme in 2010 to be executed in the interests of the KMG EP’s holders of preferred shares.

From the point of view of managing monetary funds, S&P regards the USD 1.5bn bond deal with NC KMG as positive because credit rating on liabilities in foreign currency of NC KMG is BB  plus  / Stable/--, at least three notches above the ratings of domestic banks in which KMG EP is making deposits.