Moody's cuts ATF Bank view to negative

Moody's Investors Service said it changed the outlook on the D- bank financial strength rating of ATF Bank to negative from stable and affirmed its Baa2/prime-2 global local-currency deposit ratings, Baa2 senior unsecured debt rating and Ba1 junior subordinated debt rating (with negative outlook) and Ba1/not-prime foreign-currency deposit ratings (with stable outlook).

The outlook change was due to the likelihood of deterioration in the bank's loan portfolio quality as result of tightening economic conditions in Kazakhstan, particularly the crisis in the construction and real estate sector, Moody's said.

Another negative rating driver is the bank's reduced capacity to attract market funding, significantly increasing its exposure to refinancing risk, the agency said.

The support for the bank from its Aa3-rated parent UniCredit provides the bank with a cushion enabling it to meet its near-term obligations, Moody's added.

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