S&P cuts, reviews KazEximbank

S&P said it lowered its long- and short-term issuer credit ratings on Eximbank Kazakhstan JSC (KazEximbank) to CCC+/C from B-/B.

The agency also lowered its Kazakh national scale rating on the bank to kzB- from kzB+.

S&P subsequently placed all ratings on CreditWatch with developing implications.

“The downgrade reflects a view that KazEximbank's business model and longer-term viability in the Kazakh banking sector are questionable,” the agency said in a news release.

S&P said it thinks that KazEximbank's franchise is increasingly dependent on the ability and willingness of its shareholders to support the bank, the ability of the bank to address its problem loans and the ability of the bank to improve its maturity profile and the stability of its funding base via securing government-related and shareholder-related funding.

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