Moody's may downgrade Kazakh banks

Moody's Investors Service said it placed on review for possible downgrade the bank financial strength ratings and debt and deposit ratings of eight Kazakh banks.

Moody's also said also placed on review for possible downgrade the issuer ratings of four government-related issuers, including:

• ATF Bank's bank financial strength rating at D-, local-currency deposit rating at Baa2, local-currency deposit rating Baa2, senior unsecured debt rating Baa2;

• Bank CenterCredit's bank financial strength rating D-, local-currency and foreign-currency deposit ratings Ba1, senior unsecured debt rating Ba1;

• BTA Bank's bank financial strength rating at D-, local-currency and foreign-currency deposit ratings at Ba1 and senior unsecured debt rating at Ba1;

• Caspian Bank's bank financial strength rating at D-, local-currency and foreign-currency deposit ratings at Ba3 and senior unsecured debt rating at Ba3;

• Delta Bank's bank financial strength rating at E+ and local-currency and foreign-currency deposit ratings at B3;

• Eximbank Kazakhstan's bank financial strength rating at E+ and local-currency and foreign-currency deposit ratings at B3;

• Halyk Savings Bank of Kazakhstan's bank financial strength rating at D, local-currency deposit rating at Baa3 and senior unsecured debt rating Baa3;

• Kazkommertsbank's bank financial strength rating at D-, local-currency and foreign-currency deposit ratings Ba1 and senior unsecured debt rating at Ba1;

• Agrarian Credit Corp.'s issuer rating at Baa2;

• Astana Finance's issuer rating Ba1;

• KazAgroFinance's issuer rating Baa2;

• Kazakhstan Mortgage Co.'s issuer rating at Baa1;

Moody's also said it placed on review for possible downgrade the debt and deposit ratings of eight Kazakh banks. The bank financial strength ratings of these banks are affirmed. The affected banks are:

• Alfa-Bank Kazakhstan's bank financial strength rating at E+, local-currency and foreign-currency deposit ratings at Ba3;

• Eurasian Bank's bank financial strength rating at E+, local-currency and foreign-currency deposit ratings at B1;

• House Construction Saving Bank of Kazakhstan's bank financial strength rating at E+, local-currency deposit rating at Baa2;

• Kazinvestbank's bank financial strength rating at E+, local-currency and foreign-currency deposit ratings at B2;

• Nurbank's bank financial strength rating at E+, local-currency and foreign-currency deposit ratings at B1;

• SB Sberbank's bank financial strength rating at E+, local-currency and foreign-currency deposit ratings at Ba2;

• Temirbank's bank financial strength rating at E+, local-currency and foreign-currency deposit ratings at Ba3 and senior unsecured debt rating at Ba3;

• Tsesna Bank's bank financial strength rating at E+, local-currency and foreign-currency deposit ratings at B1 and senior unsecured debt rating at B1;

Moody's also said it downgraded the issuer rating of Development Bank of Kazakhstan to Baa1 from A2, and placed it on review for possible further downgrade. The Ba3 issuer rating of DBK-Leasing, a subsidiary leasing company of Development Bank of Kazakhstan has been affirmed.

Moody's also said it affirmed the E+ bank financial strength rating and maintained the review for possible downgrade on the deposit and debt ratings of Alliance Bank and on the issuer ratings of Seimar Alliance Financial Corp., Alliance Bank's holding company.

Moody's also said it affirmed the Ba1/not-prime foreign-currency deposit ratings of ATF Bank and Halyk Savings Bank, which are constrained by the country ceiling for Kazakhstan.

These actions reflect an assessment of increased uncertainty regarding government support to the Kazakh banks after government officials said they intend to restructure the banks' foreign borrowings, Moody's said.

These actions also reflect growing pressure on Kazakh banks liquidity position, financial fundamentals and franchise viability caused by the tightening economic conditions in the country, the agency said.

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