OREANDA-NEWS. December 15, 2011. Moody's Investors Service has assigned a definitive Ba3 rating and a loss-given default assessment of 4(LGD-4) to the KZT40 billion (around USD270 million) worth of 7.5% bonds of JSC National Company Food Contract Corporation (FCC), the largest grain trader in Kazakhstan. The final terms of the bonds are in line with the drafts reviewed for the provisional (P)Ba3 instrument rating assignment, reported the press-centre of KASE.

RATINGS RATIONALE

Moody's definitive rating on this debt obligation is in line with the provisional rating assigned on 27 October 2011. Moody's ratings rationale was set out in a press release issued on that date.

PRINCIPAL METHODOLOGY

FCC's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk.

Moody's compared these attributes against other issuers both within and outside FCC 's core industry and believes FCC's ratings are comparable to those of other issuers with similar credit risk. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009 and the Government-Related Issuers methodology published in July 2010. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

FCC's principal mandate is to maintain state grain reserves at the levels required to supply the Kazakh population, to ensure timely grain replenishment and to provide loans to farmers. The company is also responsible for keeping accounting records and monitoring the quality, quantity and security of state grain resources. The company has the rights to perform commercial operations - on behalf of the state - related to grain sales and other non-oil related activities such as cotton production, bio-diesel and bio-ethanol production, and more recently horticultural production. At the end of December 2010, FCC reported revenues of KZT79 billion (around USD530 million) and EBIT of KZT11.4  billion (around USD75 million).