Moody's rates Tengri Bank B2

Moody's Investors Service said it assigned long-term local- and foreign-currency deposit ratings of B2 to Tengri Bank, along with a baseline credit assessment of B3 and adjusted baseline credit assessment of B2, long-term counterparty risk assessment of B1(cr) and long-term counterparty risk ratings of B1.

The outlook is stable.

The bank's adjusted baseline credit assessment and deposit ratings incorporate a moderate probability of affiliate support from India's Punjab National Bank, which owns a 49% stake in Tengri Bank, resulting in a one-notch uplift above the bank's baseline ratings, Moody's said.

Moody's also said it assigned a national scale long-term deposit rating of Ba2.kz and a national scale long-term counterparty risk rating of Baa3.kz to Tengri Bank.

The bank's ratings reflect the bank's unseasoned business model and loan book, given very rapid new lending growth, currently insufficient loan-loss reserve coverage of problem loans and unproven ability to sustainably cover cost of risk with recurring pre-provision income, Moody's said.

Tengri Bank is a small commercial bank in the Republic of Kazakhstan, providing a wide range of banking services to legal entities and individuals, the agency said.

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