Fitch affirms Kazkommertsbank

Fitch Ratings said it affirmed Kazkommertsbank's ratings at foreign-currency issuer default BB+ with positive outlook, short-term foreign-currency B, local-currency issuer default BBB- with stable outlook, short-term local-currency F3, individual C/D and support 3.

The ratings reflect the moderate probability of support being forthcoming, in case of need, from the Kazakhstani authorities, Fitch said.

The rating also reflects the risks inherent in the bank's rapid loan growth, which was strong in the fourth quarter of 2006 following the receipt of new capital. It also reflects the bank's high construction sector and individual borrower concentrations, Fitch said and potential structural risks stemming from reliance on external funding.

However, the agency said the rating also considers the bank's strong franchise, long track record of sound performance, reasonable asset quality and satisfactory liquidity and capitalization.

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