S&P cuts AsiaCredit national scale rating

S&P said it revised its outlook on AsiaCredit Bank JSC to negative from stable.

The agency affirmed the B-/B long- and short-term issuer credit ratings on the bank.

At the same time, S&P lowered its Kazakhstan national scale rating on AsiaCredit Bank to kzB+ from kzBB-.

The agency said the revision stems from concerns regarding the stability of AsiaCredit Bank's franchise and the bank's ability to sustain its customer base under the deteriorated operating conditions.

“We believe the market's confidence in small and midsize banks in Kazakhstan started declining in April 2018, which might have had a negative spill-over effect on all other relatively small banks with a concentrated and confidence-sensitive client base,” S&P said in a news release.

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