S&P lowers Kazkommertsbank

Standard & Poor's said it lowered to B- from B the long-term counterparty credit rating on Kazkommertsbank JSC.

The agency also said it lowered the Kazakhstan national scale rating to kzBB- from kzBB and affirmed its short-term rating at C

The ratings also were removed from CreditWatch with negative implications, where they were placed in October 2014.

The outlook is negative.

The bank’s capitalization is expected to be very weak over the next 12- to 18-months, pressured by non-performing loans that originated before the 2008 financial crisis, S&P said.

The acquisition of BTA Bank and the subsequent transfer of some assets further complicated an already challenging situation for Kazkommertsbank, the agency said.

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