Fitch ups some Kazakh banks

Fitch Ratings said it upgraded the long-term issuer default ratings of Kazkommertsbank to B from B- and Bank Centercredit to B+ from B.

The agency also said it affirmed the long-term issuer default ratings of three other Kazakh banks: ATF Bank at BBB, Halyk Bank of Kazakhstan at BB- and Kaspi Bank at B-.

Fitch also said it upgraded the long-term issuer default rating of BCC-Moscow and affirmed Moskommertsbank at B-.

All of the long-term issuer default ratings have a stable outlook, with the exception of ATF Bank, which has a negative outlook, Fitch said.

The agency said it continues to regard the Kazakh banking sector as weak, but stable as reflected in the generally low rating levels and the prevailing rating outlook.

The benign macroeconomic environment and increasing government support for troubled industries could somewhat ease deep-seated asset quality problems, which remain the sector's major weakness, Fitch said.

Nevertheless, reported non-performing loans are likely to remain volatile as previously restructured exposures mature, the agency said, and banks in some cases take a tougher stance on problem borrowers.

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