OREANDA-NEWS. August 01, 2011. Fitch Ratings confirmed the long-term rating default of the issuer Kazatomprom in a foreign currency at the level of 'BBB-' and revised its outlook from "Stable" to "Negative". As noted by Fitch, the reason of rating revision was the increase in the overall leverage of Kazatomprom, reported the press-centre of KASE.

Recall that in May 2010 Kazatomprom issued a five-year 500 million U.S. dollars Eurobonds, which had a significant impact on the growth of the financial indebtedness of the Kazatomprom as a whole.

Despite the relatively high level of leverage, operating activities of Kazatomprom is carried out at own funds. Borrowed funds are raised primarily to finance projects under the investment program.

At the same time, except major investment projects realizable within the framework of strategic objectives to build a full nuclear fuel cycle in Kazakhstan, Kazatomprom has launched new investment areas, such as projects to develop alternative sources of energy production: the production of photovoltaic modules on the basis of Kazakhstani silicon (solar energy),  production of vertical-axis wind power stations (wind power), the production of heat pump units (thermal energy).

Within the study of questions on product portfolio diversification, Kazatomprom is now successfully implementing several projects aimed to become one of the major players on the world market of rare-metal and rare-earth products. Development and production of rare-earth metals is also a new direction for the company, with the main purpose to create in Kazakhstan an entirely different type of high-tech knowledge-intensive production of the final processing, which will give impetus to the development of national science, industry and training.

In addition, in order to ensure core business needs in chemical reagents the company develops projects independently or in conjunction with private companies producing a wide range of chemicals - sulfuric acid, caustic soda, hydrogen peroxide, resins and reagents for producing potable water, etc.

An integral part of the investment program of Kazatomprom is the realization of social projects aimed to reconstruct and develop social infrastructure in remote regions of the country. This includes training, health, development and support of small and medium business, culture, sports and landscaping. The realization of social programs is carried out at Kazatomprom's own funds.

Taking into account the strategic plans and the pace of development, the management of Kazatomprom believes that the company has sufficient capacity for decision of all financial matters related to development.