National Company «KazMunayGas» - Fixed Income Analysis

We hold “Buy” recommendation of NC KMG bonds, while continuing to point out the significant role of the issuer in the country's oil and gas industry and believe that the incentive for support from the main shareholder will not weaken in the event of deteriorating conditions in the oil market. The impressive amount of assistance provided in 2015 from Samruk-Kazyna and the National Bank, reinforces our assumptions. At the same time, NC KMG bonds are an attractive alternative to foreign currency deposits that can provide a higher guaranteed income.