S&P raises three Kazakhstan banks

Standard & Poor's said it has raised its long-term counterparty credit and certificate of deposit ratings on three banks in the Republic of Kazakhstan (foreign currency, BBB-/stable/A-3, local currency, BBB/stable/A-3) due to a greater weighting of potential government support in the banks' creditworthiness.

Affected banks include Kazkommertsbank JSC, raised to BB+ from BB, Bank TuranAlem, raised to BB from BB- and Halyk Savings Bank of Kazakhstan, raised to BB from BB-.

At the same time, S&P said it affirmed the B short-term ratings on the three banks. The outlook on the long-term ratings on the banks is stable.

"The upgrades reflect our opinion that the government of Kazakhstan would likely provide extraordinary assistance to the systemically important banks in the country in the event that these banks encounter distress," said S&P credit analyst Magar Kouyoumdjian.

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