ATFBank (Kazakhstan) informed Fitch Ratings downgraded the bank ratings

/KASE, March 27, 13/ – ATFBank (Almaty), securities of which are officially listed on Kazakhstan Stock Exchange (KASE), provided to KASE the following press release of March 21, 2013: quotation Fitch Ratings has downgraded ATF Bank JSC's Long-term Issuer Default Ratings (IDRs) to 'BBB-' from 'BBB' and placed the ratings on Rating Watch Negative (RWN). A full list of rating actions is at the end of this commentary. KEY RATING DRIVERS The downgrade is driven by the downgrade of ATF's ultimate parent bank Unicredit S.p.A. to 'BBB+'/Negative (see 'Fitch Takes Rating Actions on Italian Banks Following Sovereign Downgrade' dated 18 March 2013 at (www.fitchratings.com). The RWN follows Unicredit's announcement on 15 March 2013 that it has signed an agreement for the disposal of its 99.75% share in ATF, and reclassified the bank as an asset held for sale. The prospective buyer, KazNitrogenGaz LLP (not rated), is a Kazakh-domiciled holding company, fully owned by local businessman Galimzhan Esenov, and also holds majority stakes in two small Kazakh insurance companies. Unicredit expects the sale to be completed by end-April 2013 subject to approval by the National Bank of Kazakhstan. RATING SENSITIVITIES Fitch will resolve the RWN on the Long-term IDRs following (i) completion of the sale, and (ii) a review of ATF's standalone profile, which drives its Viability Rating (VR) of 'b-'. Following the resolution of the RWN, Fitch expects that ATF's Long- term IDR will probably be aligned with its VR, given the more limited reliability of support from the new shareholder and significant uncertainty concerning the readiness of the Kazakh authorities to provide support, even to systemically important domestic banks. ATF's VR reflects the bank's weak asset quality, moderate capitalisation, modest pre-impairment profitability (before expenses and recoveries related to credit protection of the loan book provided by Unicredit) and negative net income for the past four years. However, the VR also considers the bank's currently satisfactory liquidity position, the moderate improvement in capitalisation following the equity injection by Unicredit in Q312 and the generally supportive operating environment, which should help efforts to stabilise and improve asset quality. Fitch's review of the VR will focus in particular on (i) recent asset quality trends, the current adequacy of loan impairment reserves and the plans of the new shareholder and management to resolve problem exposures; (ii) the stability of the bank's funding following recent deposit outflows and the announcement of the sale, and the bank's future funding strategy, and (iii) the structure of the acquisition, including any leverage at the new shareholder level, and the bank's strategy following the change in ownership. The rating actions are as follows: Long-term foreign and local currency IDRs: downgraded to 'BBB-' from 'BBB', placed on RWN Short-term foreign currency IDR: 'F3' placed on RWN National Long-term Rating: downgraded to 'AA(kaz)' from 'AA+(kaz)', placed on RWN Viability Rating: 'b-', unaffected Support Rating: '2' placed on RWN Senior unsecured debt downgraded to 'BBB-' from 'BBB', placed on RWN National senior unsecured debt rating downgraded to 'AA(kaz)' from 'AA+(kaz)', placed on RWN Subordinated debt downgraded to 'BB+' from 'BBB-', placed on RWN National subordinated debt downgraded to 'AA-(kaz)' from 'AA(kaz)', placed on RWN Perpetual subordinated notes downgraded to 'B+' from 'BB-', placed on RWN In accordance with Fitch's policies the issuer appealed and provided addition additional information to Fitch that resulted in a rating action that is different from the original rating committee outcome. ends [2013-03-27]