Fitch cuts seven Kazakhstani banks' outlook to negative

Fitch Ratings said it changed the outlooks for the long-term issuer default ratings of seven Kazakhstani banks to negative from stable.

The agency said that this action follows the change in outlooks today on Kazakhstan's BBB long-term foreign currency issuer default rating and BBB+ long-term local currency issuer default rating to negative from stable and reflects the fact that these entities' long-term issuer default ratings are driven by potential sovereign support.

At the same time, Fitch said it has affirmed the long-term issuer default ratings of Temirbank and Bank Caspian with stable outlooks.

The long-term issuer default ratings of these banks are not directly dependent on potential sovereign support, Fitch added, noting that it has also reviewed and affirmed, the individual ratings of four banks: Alliance Bank, ATF Bank, Bank CenterCredit and Caspian.

This follows the recent affirmations of the individual ratings of Halyk Bank, Kazakommertsbank, Bank TuranAlem and Temir, the agency said, noting that these individual ratings already factor in Fitch's expectation of some asset quality deterioration as loan books season, economic growth slows and the construction/real estate sector experiences lower liquidity and reduced real estate prices.

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