Moody’s assigns Halyk Bank bond Ba3

Moody's Investors Service said it assigned a provisional Ba3 long-term global local-currency debt rating to Halyk Savings Bank of Kazakhstan’s KZT 100 billion 10-year senior unsecured regular bond/debenture due 2024.

The outlook is stable.

Any subsequent local-currency senior unsecured debt issuance by Halyk Bank will be rated at the same level, subject to there being no material change in the bank's overall credit rating.

Moody’s said the provisional Ba3 rating is based on Halyk Bank's baseline credit assessment of ba3 and is one notch lower than the bank's long-term local currency deposit rating of Ba2. Unlike Halyk Bank's local-currency deposit ratings, the bank's debt ratings do not incorporate any systemic support assumptions.

The debt rating is underpinned by the bank's strong competitive market position in Kazakhstan, its good profitability and strong loss absorption cushion. However, the rating also takes into account concentrations in the loan book and deposits as well as the high share of foreign-currency-denominated lending and the high level of problem loans that could require higher loan loss reserves, Moody’s said.

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