Moody's rates TuranAlem notes Baa2

Moody's Investors Service said it assigned a Baa2 long-term foreign currency rating to the senior and subordinated debt issued by JSC Bank TuranAlem through the $3 billion guaranteed medium-term note program of TuranAlem Finance BV, which is unconditionally and irrevocably guaranteed by Bank TuranAlem.

Moody's has also assigned a Baa2 long-term foreign currency rating for the $200 million drawdown of floating-rate senior unsecured notes with a maturity of three years. It is the first draw down under the program.

The outlook is stable.

TuranAlem's senior unsecured debt has pierced Kazakhstan's Baa3 sovereign ceiling for bonds, thus reflecting the bank's important role in the country's economy, the agency said.

At the same time, the bank faces refinancing risk, which has grown considerably over the past few years as the bank tapped international capital markets with a number of sizable issues. Higher dependence on market funding has increased such refinancing risk and is placing negative pressure on the bank's debt ratings, the agency said.

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