S&P ups Kazkommertsbank

Standard & Poor's said it raised its counterparty credit and certificate of deposit ratings on Kazakhstan-based Kazkommertsbank (JSC) to BB from BB-. The outlook is stable.

At the same time, the B short-term counterparty credit and certificate of deposit ratings on the bank were affirmed.

S&P also raised Kazkommerts International BV's senior unsecured debt to BB from BB-. The debt is guaranteed by Kazkommertsbank (JSC).

S&P said the upgrade reflects the bank's sustained leading commercial position in Kazakhstan (foreign currency, BBB-/stable/A-3; local currency, BBB/stable/A-3), increased diversification into small and midsize enterprise and retail sectors, and strengthened risk management. A robust economic growth also supports these positive developments.

The ratings are constrained, however, by the rapid loan growth and significant concentrations in lending and funding in a high-risk economic and banking environment. Furthermore, fast loan growth has pressurized capitalization, which should be addressed soon, the agency said.

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