S&P cuts Kazkommertsbank, Halyk Bank

Standard & Poor's said it lowered the long-term counterparty credit ratings on Kazkommertsbank (JSC) to B from B+ and Halyk Savings Bank of Kazakhstan to B+ from BB-.

The outlook is negative.

S&P affirmed the short-term ratings on Halyk at B and lowered Kazkommertsbank's rating to C from B.

"The rating actions reflect our view of the continuing downward pressure on these banks' asset quality, capitalization, funding, and liquidity," S&P analyst Ekaterina Trofimova said in a statement.

These concerns are partly mitigated by the state's ongoing support to these banks through liquidity support and by their good market positions and adequate core revenue generation, supported by aggressive cost management, the agency noted.

Cautious and fairly efficient business and operational adjustments, as well as deleveraging, are also helping the banks to adapt to their worsening operating environment, S&P said.

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