Fitch affirms most Halyk Bank

Fitch Ratings said it upgraded Kazakhstan-based Halyk Bank's individual rating to D from D/E. The other ratings have been affirmed at long-term BB-, short-term B and support 3.

The outlook for the long-term rating is positive.

Fitch said the upgrade of the individual rating reflects the improvement in profitability, the progress made in restructuring the bank's business and the growing franchise. However, the rating is held back by the inadequate loan loss reserves and high concentration in the loan book.

Capitalization has improved but is still not strong. It remains to be seen whether recent profitability can be sustained, which is essential to further strengthen the bank's capital base, the agency said.

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