S&P lowers Kazkommertsbank

Standard & Poor's said it lowered its long-term counterparty credit rating on Kazkommertsbank (JSC) to BB from BB+ and affirmed the B short-term counterparty credit rating on the bank.

At the same time, S&P said it revised its outlook on Kazkommertsbank to negative from stable.

The downgrade and outlook revision reflect S&P's growing concerns about potential pressure on the bank's asset quality and liquidity from the tight domestic credit and liquidity conditions, which are likely to persist throughout 2008.

S&P said it also lowered its rating on Kazkommertsbank's notes series 2005B and its underlying ratings on six other series to BBB- from BBB.

The agency added that the ratings reflect fast loan growth and significant concentrations in lending and funding in the high-risk economic and banking environment of the Republic of Kazakhstan (foreign currency BBB-/stable/A-3, local currency BBB/stable/A-3).

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