Fitch rates Kazkommertsbank subordinated notes BB

Fitch Ratings said it assigned a long-term rating of BB to Kazkommerts Finance 2 BV's upcoming $150 million issue of 8 5/8% limited recourse loan participation notes due 2016, with interest rate step-up in 2011.

The notes are to be used solely for financing a subordinated loan to Kazakhstan's Kazkommertsbank under a subordinated loan agreement.

The issuer will only pay noteholders amounts (principal and interest), if any, received from Kazkommertsbank under the subordinated loan agreement.

Kazkommertsbank has a foreign currency issuer default rating of BB+ with a stable outlook, and the BB rating of the subordinated notes is in line with Fitch's standard notching practice for subordinated instruments of issuers with issuer default ratings of BB- or higher.

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