Fitch lifts Kazkommertsbank

Fitch Ratings said it revised the outlook on Halyk Bank of Kazakhstan's long-term issuer default ratings to positive from stable and affirmed the issuer default ratings at BB.

Fitch also said it upgraded Kazkommertsbank's long-term issuer default ratings to BB from BB- and removed them from Rating Watch positive.

The actions follow the completion of the effective merger of Kazkommertsbank into Halyk via the transfer of all of Kazkommertsbank's property, rights and obligations to Halyk, Fitch explained.

The agency also said it upgraded Kazkommertsbank's long-term issuer default ratings to BB with a positive outlook to align them with Halyk and to capture its view of risks to Kazkommertsbank's creditors at the moment of the transfer of the bank's liabilities to Halyk.

Halyk's ratings are driven by its intrinsic strength, as expressed by its viability rating, Fitch said.

The ratings continue to capture its dominant market shares and significant pricing power as the largest deposit-taker in the country, the agency said. The ratings also reflect a still high amount of legacy problem loans and a cyclical and structurally weak local operating environment, S&P added.

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