Moody's rates Nurbank note Ba3

Moody's Investors Service said it assigned a Ba3 rating to the senior unsecured foreign-currency notes issued by NurFinance BV, which will be unconditionally and irrevocably guaranteed by Kazakhstan-based JSC Nurbank. The proceeds from the issue will be deposited with Nurbank.

The outlook for the rating is stable.

Noteholders will rely for repayment solely and exclusively on Nurbank's ability to make payments under the deposit and guarantee agreements. Moody's said the Ba3 rating is based on Nurbank's fundamental credit quality.

Nurbank's obligations under the guarantee agreement will rank at all times at least pari-passu with the claims of all other unsecured and unsubordinated creditors of the bank, save for those claims that are preferred by any relevant law. The terms and conditions of the notes contain a negative pledge clause and a cross-acceleration clause for both Nurbank and NurFinance, as well as a covenant that Nurbank's total capital ratio calculated in accordance with Basel requirements should not fall below 10%. In the event the capital adequacy ratio where to approach 10%, the bank's ratings would become unstable and significant downward pressures may ensue.

According to the agency, the notes might be eligible for early redemption by the noteholders in the event of a merger or a sale of assets, if this results in Nurbank being downgraded by two notches or in the withdrawal of its ratings.

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