Moody's rates Temirbank notes B1

Moody's Investors Service said it assigned a B1 rating to the senior notes to be issued by Temir Capital BV and unconditionally and irrevocably guaranteed by Kazakhstan-based Temirbank. The amount of the notes has yet to be determined, but their tenor will not exceed three years. The outlook is stable.

Moody's noted that the B1 rating assigned to Temir Capital is based on the fundamental credit quality of the guarantor, Temirbank (B1/stable), which does not factor any support from the bank's shareholders and Kazakh financial authorities. The bank's obligations under the guarantee will rank at least pari passu in right of payment with all other present and future unsecured obligations.

According to the terms and conditions of the notes, Temirbank must maintain on a consolidated basis capital adequacy ratio of at least 10 % and comply with a number of other covenants such as negative pledge, limitations on mergers and consolidation and restrictions on distribution of dividends. The agency said that, while the likelihood of any of the above-mentioned covenants being triggered is relatively low, any such occurrence could potentially have adverse liquidity implications for the bank.

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