Fitch rates Kazkommerts notes BB

Fitch Ratings said it assigned Kazkommerts International BV's forthcoming senior notes an expected long-term BB rating. The notes are to be guaranteed by JSC Kazkommertsbank. The rating is in line with KKB's long-term BB rating.

Fitch has also assigned an expected long-term BB- rating to the forthcoming subordinated loan participation notes due 2014 to be issued by Citigroup Global Markets Deutschland for the purpose of financing a subordinated loan to KKB.

For the senior notes, the noteholder's claims will rank at least pari passu with the claims of all other unsecured and unsubordinated creditors of KKB, except as otherwise provided for by law. In addition there is a cross default clause and a negative pledge clause, although securitization of loans up to a total of 15% of KKB's gross loans is permitted.

In the case of the subordinated notes, Citigroup has no obligation to the noteholders other than to account for all amounts received, if any, from KKB under the loan agreement. The agreement between Citigroup and KKB contains a covenant that the lender's claims will rank at least pari passu with the claims of all other unsecured and subordinated creditors of KKB, except as otherwise provided for by law.

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