Moody's upgrades Kazkommerts, rates notes Baa2, Baa3

Moody's Investors Service upgraded Kazkommerts International BV's $200 million global bonds due 2007 and $500 million global bonds due 2013 to Baa2 and assigned a Baa2 rating to Kazkommerts' planned $200 million senior unsecured notes due 2009 and the a Baa3 rating to the planned subordinated loan participation notes due 2011. The outlook is stable.

Moody's noted that the senior unsecured bond issues have pierced Kazakhstan's sovereign ceiling for bonds of Baa3 while the subordinated debt issue has been placed at the sovereign ceiling.

The level of the ratings reflects the important role the bank plays in the country's economy.

Moody's noted that the likelihood of Kazkommerstbank receiving support from the government in case of distress is very high and is the primary driver of the ratings. The ratings also take into account the fact that Kazkommertsbank is the largest bank in Kazakhstan, and over a relatively short period has been able to develop an important franchise in the domestic corporate market.

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