S&P upgrades Nurbank

Standard & Poor's said it raised its long-term counterparty credit and certificate of deposit ratings on Kazakhstan-based JSC Nurbank to B from B-, owing to the bank's improving franchise and diversification and business growth. At the same time, the 'C' short-term counterparty credit and certificate of deposit ratings were affirmed.

The outlook remains stable.

During the past few years, the bank has made progress in solidifying its business base in Kazakhstan and in upgrading its infrastructure and systems. S&P said it also views the new capital increase of Kazakhstan tenge 2 billion raised in November 2004 in a positive light, although this is only enough to maintain capitalization at its current marginal level.

The ratings on Nurbank remain constrained by the vulnerable, although improving, economic environment of the Republic of Kazakhstan (foreign currency, BBB-/stable/A-3; local currency, BBB/stable/A-3) to which the bank is exposed, as well as Nurbank's small size, which exposes it to high concentration risks, the agency added.

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