S&P revises Eurasian Bank to negative

S&P said it revised the outlook on Kazakhstan-based JSC Eurasian Bank to negative from stable and affirmed its B/B long- and short-term counterparty credit ratings.

The agency also affirmed the long-term Kazakhstan national scale rating of kzBB.

S&P said the outlook revision reflects its view that Eurasian Bank's capitalization might be negatively affected by the operating environment in Kazakhstan.

Although it understands that the bank's shareholders are currently expressing their willingness to support the bank via additional equity inflows, the agency said it can't exclude the possibility that their propensity to support the bank might diminish.

S&P now sees higher probability of such a scenario – although it's not its base case – because of the continued adverse economic environment in Kazakhstan and volatile commodity prices, which expose affiliated metals and mining company Eurasian Resources Group (CCC+/stable/C) to respective risks (the agency believes Eurasian Resources is the main asset of the Eurasian Bank shareholders).

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