S&P puts Halyk Bank on negative watch

S&P said it placed the BB long-term counterparty credit rating and kzA Kazakhstan national scale rating on Halyk Savings Bank of Kazakhstan on CreditWatch with negative implications.

The agency also said it affirmed the bank's B short-term counterparty credit rating.

S&P also said it revised the CreditWatch implications on the B- long-term and B short-term counterparty credit ratings and kzB+ Kazakhstan national scale ratings on Kazkommertsbank JSC to developing from negative.

The agency said it placed the ratings on CreditWatch negative in May.

The CreditWatch actions follow the signing of a framework agreement by Kazakhstan's government and bank officials that sets the terms for the acquisition of Kazkommertsbank by Halyk Bank, S&P said.

The agency said it the acquisition is very likely to go ahead.

Halyk Bank was placed on CreditWatch negative because the acquisition might weaken Halyk Bank's creditworthiness, S&P said.

Kazkommertsbank has a significant legacy of a problem-assets portfolio, the agency explained.

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