Moody's rates Kazkommertsbank note Baa1

Moody's Investors Service said it assigned a Baa1 long-term foreign-currency debt rating to the upcoming drawdown of senior unsecured notes issued under the $3 billion guaranteed debt issuance program of Kazkommerts International BV. The notes will be unconditionally and irrevocably guaranteed by JSC Kazkommertsbank and will represent unsubordinated and unsecured obligations of the issuer and the guarantor. The amount, tenor and the price of the notes are to be determined.

The outlook for the rating is stable.

The agency said that according to the terms of the program, Kazkommerts and Kazkommertsbank will have to comply with a number of covenants such as negative pledge and a limitation on certain transactions. Kazkommertsbank will also have to comply with limitation on payment of dividends.

The rating is supported by the important role Kazkommertsbank plays in Kazakhstan's economy and the very likelihood of the bank receiving support from the Kazakh financial authorities in case of distress, Moody's said.

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