Moody's rates Kazkommerts drawdown Baa2

Moody's Investors Service said it has assigned a long-term rating of Baa2 and short-term rating of Prime-3 with a stable outlook to the $1.5 billion guaranteed debt issuance program of Kazkommerts International BV.

The notes and the guarantee will be unconditionally and irrevocably guaranteed by JSC Kazkommertsbank (Kazakhstan) and will represent unsubordinated and unsecured obligations of the issuer and the guarantor. The tenor, which may vary from one month to 30 years, and the price of the notes will be defined individually for each tranche.

The outlook is stable.

The first drawdown of long-term senior unsecured notes has been rated Baa2 (stable) in line with the program's rating. The size of the drawdown has yet to be determined while its tenor will be up to 10 years.

The rating of Kazkommertsbank's senior unsecured debt has pierced Kazakhstan's sovereign ceiling for bonds of Baa3, Moody's said.

The rating reflects the vital role the bank plays in the country's economy. Moody's noted that the likelihood of Kazkommertsbank receiving support from the government in case of distress is very high and is the primary driver of the ratings.

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