Standard & Poor's assigns AsiaCreditBank JCS "kzBB+" on the national grade, leaving other ratings unchanged

/IRBIS, October 11, 2011/ - Ratings Services Standard & Poor's has assigns national scale rating "kzBB +" to AsiaCredit Bank JCS, announced October 10 Standard & Poor's. As indicated, the long-term and short-term rating "B/B", assigned to the bank earlier, and forecast changes in ratings "stable" remain unchanged after assigning the rating on a national scale. "The level of the national scale rating reflects our view that a small percentage of the bank on Kazakhstani market, the high credit risk, high portfolio concentration, low profitability and aggressive plans for further growth. The positive impact on the ratings has temperate, in our opinion, the capitalization of the bank (which improved as a result of the recent capital increase), the lack of dependence on foreign borrowing and a sufficient share of liquid assets", - the report says. As noted, factors supporting the credit rating of the bank also include confident recovery of Kazakhstan (rating on liabilities in foreign currency BBB/Stabilnyy/A-3; rating for local currency: BBB+/ Stable/A-2; national scale rating: kzAAA) and stabilization in the banking sector. Forecast "Stable" reflects the view of S & P that the external pressure on the financial profile and business profile of the bank is reduced. In addition, S & P analysts expect the bank gradually improve the quality of its loan portfolio while maintaining an adequate level of base funding and liquidity management, as well as maintaining appropriate capital ratios. "If we come to the conclusion on further deterioration in the market environment in Kazakhstan, we will review the outlook to "negative", which can lead to a subsequent lowering of the ratings. However, we believe such a development unlikely. Nevertheless AsiaCredit Bank ratings could be lowered if the aggressive growth strategy of the bank will not be supported adequately capitalized, high-quality system of risk management and improved operational processes", - was stated in the message. According to analysts of S & P, ratings increase in the short term is unlikely. This will require strengthening the bank's market position, expanding its customer base, strong business diversification, further improvement of risk management, maintaining adequate financial performance is stable and improving asset quality. [2011-10-11]