Fitch cuts Halyk Bank

Fitch Ratings said it commented on the downgrade on the foreign currency long-term issuer default rating of Halyk Bank to BB from BB+.

The agency also announced that it was maintaining the negative outlook. Halyk's Individual rating of C/D was affirmed yesterday, but is now also under downward pressure.

According to the agency, the downgrade of the bank's long-term issuer default rating reflects the reduced ability of the Kazakh authorities to provide support to the bank, as reflected in the downgrade of the sovereign ratings.

The downward pressure on the Individual rating reflects the agency's deepening concerns over asset quality as loan impairment rapidly increases and the domestic economy's growth prospects are impacted by a likely global recession, lower oil prices and a sustained near-closure of capital markets which has led to sharply lower credit growth.

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