S&P cuts Eurasian Bank outlook to negative

Standard & Poor's said it revised its outlook on JSC Eurasian Bank to negative from stable.

At the same time, S&P said it affirmed its B long-term and B short-term counterparty ratings on the bank.

At the same time, the Kazakhstan national-scale rating was downgraded to kzBB from kzBBB-, the agency noted, adding that the outlook revision reflects its growing concerns about potential pressure on the bank's asset quality from the tight domestic credit and liquidity conditions, which are likely to persist throughout 2008.

The high-risk economic and banking environment in the Republic of Kazakhstan (foreign currency BBB-/stable/A-3, local currency BBB/stable/A-3, Kazakhstan national-scale kzAAA) accentuates this pressure, as does the bank's rapid, albeit slowing, credit growth and concentrations in loans and deposits, the agency noted.

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