International credit rating agency Fitch Ratings has confirmed its BBB- long-term issuer default rating for Kazakhstan Temir Zholy JSC (KTZ), maintaining the stable outlook for the national railway operator. The affirmation reflects KTZ's operational stability and what Fitch describes as efficient operating activities across the company's core freight and transit operations.
The rating determination comes as KTZ reported a gross profit of 38.1 billion tenge for the first nine months of 2024, representing an increase of 11.1% compared to the same period in 2023. Fitch attributed the improvement to the company's strategic focus on expanding high-margin transit traffic, implementing tariff increases, and trimming operating expenditures.
KTZ's financial resilience continues to be underpinned by the confidence of international financial institutions, which provide the operator with access to credit facilities and guarantees. This external support reinforces the company's capacity to fund infrastructure investments and service outstanding debt obligations.
In its assessment, Fitch emphasized KTZ's critical role within Kazakhstan's state development framework. The agency noted that KTZ functions as the nation's primary transportation artery, linking a widely dispersed population and serving as a key conduit for growing transit and export trade flows. The railway operator's strategic importance extends beyond domestic logistics, positioning Kazakhstan as a pivotal transit corridor across Central Asia.