Fitch: Kazakh banks face moderate risk

Fitch Ratings said there is only moderate near-term refinancing risk for Kazakhstan's banks as a result of the current turbulence on global financial markets and the banks' reduced access to foreign funding.

The high proportion of external liabilities makes the banks highly dependent on continued international market access to finance further growth, the agency said. However, Fitch concluded that scheduled repayments in the second half of 2007 and in 2008 are moderate and well covered by liquid assets. The agency does not, therefore, expect the Kazakhstani banking sector to face a critical tightening of liquidity driven only by reduced access to foreign funding, even if the latter is prolonged.

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