Fitch raises Kazakhstan Mortgage, debt

Fitch Ratings said it upgraded Kazakhstan Mortgage Co.’s long-term foreign currency issuer default rating to BBB from BBB- and long-term local currency issuer default rating to BBB+ from BBB.

The short-term foreign currency issuer default rating was affirmed at F3.

The outlooks on the long-term ratings are stable.

The agency also upgraded the long-term local currency rating on the company’s outstanding senior debt to BBB+ from BBB and the long-term local currency rating on the outstanding subordinated bonds to BBB from BBB-.

Fitch said the upgrades reflect Kazakhstan Mortgage’s strengthened strategic importance following its appointment as the priority provider of social rental housing under the state's program for regions' development until 2020 and extended government support.

Consequently, the agency narrowed the notching from the republic of Kazakhstan (BBB+/stable/F2) to one from two.

Kazakhstan Mortgage’s ratings reflect the company's ultimate ownership by the government, its high strategic importance in social housing and strong control and oversight by the state, Fitch said. However, the ratings also factor in moderate integration with the state as its financial flows and debt stock are not consolidated in any government bodies.

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