Fitch rates JSC Home Credit bonds BB-

Fitch Ratings said it assigned an expected long-term rating of BB- to SB JSC Home Credit and Finance Bank's upcoming local bonds, along with an expected national long-term rating of BBB+(kaz).

The total amount and final maturity of the issue are yet to be determined.

The ratings correspond to the bank's long-term local-currency issuer default rating of BB- and national rating of BBB+(kaz). Those ratings reflect the moderate probability of the bank receiving support if needed from its parent, Russia-based Home Credit and Finance Bank.

The probability of support is based on the bank's full ownership by Home Credit and Finance, its small size relative to the parent and reputational risk for the parent company in case of the bank's default, Fitch said.

The one-notch difference between the banks' ratings reflect the cross-border nature of the parent-subsidiary relationship, the subsidiary's limited track record of operations and some uncertainty about the long-term commitment of Home Credit and Finance to support its subsidiary in case of a prolonged deterioration of the operating environment in Kazakhstan, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.