Ratings

Corporate Government Score (GGS)
Benefits:
— Companies that use and follow the standards of corporate government have a lot benefits in attracting of investments. In investor’s opinion, the right corporate government ensure management’ honesty and transparency of operations of the company. As a result the risk of default is significantly reduces. For companies from developing countries corporate government is very important thing because foreign investors pay special attention to honesty and business competency of the company management.

History of KMTF’s corporate government score:

— Aug. 10, 201 – Standard & Poor’s Governance Services said today that it affirmed and immediately withdrew its ‘GAMMA-4+’ Governance, Accountability, Management Metrics and Analysis (GAMMA) score assigned to Kazakhstan’s (KMTF). (The GAMMA score is based on a 1 to 10 scale with 1 being the lowest and 10 the highest.)

The withdrawal of KMTF’s GAMMA score is made at Standard & Poor’s initiative. It reflects our decision to cease providing stand-alone governance scores, while continuing to incorporate governance analysis in our global and local scale credit ratings.

KMTF’s overall GAMMA score is the result of four component scores ranging from a low of 1 to a high of 10.
Shareholder influence: ‘5’
Shareholder rights: ‘5’
Transparency, audit, and enterprise risk management: ’4+’
Board effectiveness, strategic process, and incentives: ’4+’

— December 30, 2010—Standard & Poor’s Governance Services said it has assigned its governance, accountability, management, metrics, and analysis (GAMMA) score to JSC “Kazmortransflot” (KMTF), a national maritime shipping company.
The Agency welcomes the simplification of the ownership structure of the company, as well as changes in share capital, which increased financial independence of NMSK KMTF. Now the company is 100% owned by NC KazMunayGas (NC KMG), which previously owned by NC KMG and its sole shareholder of Samruk-Kazyna, the government asset management holding company of Kazakhstan on a parity basis, which led to the need for double reporting. Secondly, the shareholder of KMTF in the face of NC KMG has decided to capitalize most of the debt owed to him in the authorized capital of KMTF. These changes confirm the existence of a constructive relationship of the company with the shareholder. However, the limiting factor is that the company does not have the internal audit service. Also it is concerned about deficiencies in the motivation of top management and board members.

— June 4, 2009 – Corporate governance score (CGS) was recalled by JSC “NMSC “Kazmortransflot” at ‘CGS-4+’
— May 4, 2009 – Standard & Poor’s Governance Services has affirmed its corporate governance score (CGS) at ‘CGS-4+’ to joint stock company National Maritime Shipping Co. “Kazmortransflot” (KMTF);
— March 26, 2008 – Standard & Poor’s Governance Services has initially determined and assigned corporate governance score (CGS) of JSC “NMSC “Kazmortransflot” – ‘CGS-4+’.