Moody's cuts some Kazakh banks, drops view on some

Moody's Investors Service said it took rating actions on six Kazakh banks to reflect the negative impact of the continued credit and liquidity crisis on these banks' credit risk profiles. The affected banks are Kazkommertsbank, Bank TuranAlem, Halyk Bank, Alliance Bank, Bank CenterCredit and TemirBank.

"The continuing turbulence in global credit markets that started in July of this year increases the likelihood that Kazakh banks will suffer from a lack of access to international capital markets for a prolonged period of time," Armen Dallakyan, Moody's analyst, said in a written statement.

"Such lack of access to international funding to finance loan portfolio growth and an inability to refinance maturing foreign debt on the part of many Kazakh banks will slow these banks' operations and is likely to put pressure on their margins and growth rates," Dallakyan said.

Moody's downgraded Kazkommertsbank's global local-currency deposit ratings to Ba1/NP from Baa2/P-2, foreign-currency senior unsecured debt rating to Ba1 from Baa2, foreign-currency subordinated debt rating to Ba2 from Baa3 and foreign-currency junior subordinated debt rating to Ba3 from Ba1. The foreign-currency deposit ratings are unchanged at Ba1/NP. The outlook on the bank's deposit and debt ratings is stable.

Moody's downgraded TuranAlem's global local-currency deposit ratings to Ba1/NP from Baa3/P-3, foreign-currency senior unsecured debt rating to Ba1 from Baa3, foreign-currency subordinated debt rating to Ba2 from Ba1 and the foreign-currency junior subordinated debt rating is downgraded to Ba3 from Ba2. The foreign-currency deposit ratings are unchanged at Ba1/NP. The outlook on the bank's deposit and debt ratings is stable.

Moody's downgraded Halyk Bank's global local-currency deposit ratings are downgraded to Baa3/P-3 from Baa2/P-2 and foreign-currency senior unsecured debt rating to Baa3 from Baa2. The foreign currency deposit ratings are unchanged at Ba1/NP. The outlook on the bank's deposit and debt ratings is changed to negative from stable.

Moody's revised Alliance Bank's outlook on deposit and debt ratings to negative from stable. Unchanged are the foreign-currency deposit ratings at Ba2/NP, foreign-currency senior unsecured debt rating at Ba2, foreign-currency subordinated debt rating at Ba3 and foreign-currency junior subordinated debt rating at B2.

Moody's revised CenterCredit's outlook on deposit and debt ratings to negative from stable. Unchanged are the global local-currency deposit ratings at Ba1/NP, foreign-currency deposit ratings at Ba1/NP, foreign-currency senior unsecured debt rating at Ba1, foreign-currency subordinated debt rating at Ba2 and foreign-currency junior subordinated debt rating at Ba3.

Moody's downgraded TemirBank's global local-currency deposit ratings are downgraded to Ba2/NP from Ba1/NP, foreign-currency deposit ratings to Ba2/NP from Ba1/NP, foreign-currency senior unsecured debt rating to Ba2 from Ba1 and foreign-currency subordinated debt rating to Ba3 from Ba2. The outlook on the bank's deposit and debt ratings was changed to negative from stable.

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