Moody's lowers securities of three Kazakh banks

Moody's Investors Service said it downgraded the ratings on certain hybrid securities of Kazkommertsbank, ATF Bank and Bank CenterCredit. All other ratings remain unchanged.

The downgraded ratings include Kazkommertsbank's junior subordinated debt to Caa1 from B3, which is two notches below the bank's adjusted baseline credit assessment of B2; ATF Bank's junior subordinated debt to B1 from Ba3, which is two notches below the adjusted baseline credit assessment of Ba2; and Bank CenterCredit's junior subordinated debt to B3 from B2, which is two notches below the adjusted baseline credit assessment of B1.

This concludes the review for possible downgrade that began in November.

The outlook on all three banks remains negative.

The hybrid instruments are perpetual and rank deeply subordinated in liquidation, Moody's said.

Prior to the global financial crisis, Moody's said it incorporated an assumption of support from the national government. But, the systemic support for these instruments has not been forthcoming in many cases, the agency said.

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