Altyn Bank JSC (Subsidiary Bank of China CITIC Bank Corporation Ltd) says Fitch Ratings affirmed issuer default rating at "BBB-" and assigned viability rating at "bb-", outlook "Stable"
28.03.19 09:52
/KASE, March 28, 2019/ – Altyn Bank (Subsidiary Bank of China Citic Bank
Corporation Limited) (Almaty) has informed Kazakhstan Stock Exchange (KASE)
about the following:
quote
International credit rating agency Fitch Ratings (Fitch) announced that it has
affirmed the Issuer Long-term Default Rating (IDR) in foreign and national
currency of Altyn Bank JSC (Subsidiary Bank of China CITIC Bank Corporation
Ltd) (Altyn) at "BBB–", and assigned a Viability Rating (VR) at "bb -". The
outlook is Stable. International credit ratings of the Bank remain the highest
among private commercial banks in Kazakhstan.
According to Fitch, the Altyn's IDRs are driven by potential support from the
parent, China CITIC Bank Corporation Ltd. (CITIC). In turn, CITIC's ratings
(BBB / Stable) are driven by Fitch's opinion of the high likelihood of state
support from China (A+/Stable) in the event of stress. Fitch's view over
Altyn's support is based on CITIC's strategic commitment to developing a
subsidiary bank in Kazakhstan, potential reputational risks for CITIC in case
of Altyn's default and the small cost of potential support.
Fitch has assigned the Bank a VR since the agency believes there is now
sufficient clarity on future strategy, which implies a considerable degree of
operational independence from the parent bank. Altyn's 'bb-' VR captures the
bank's good asset quality, stable profitability, reasonable capitalization and a
sizeable liquidity buffer.
Altyn's CEO, Marat ALMENOV, emphasized that Altyn's international credit
ratings confirm strong positions of the bank in Kazakhstan's financial market.
He noted that Altyn's ratings reflect the results of the medium-term strategy
based on development of advanced banking technologies, maintaining high asset
quality and improving customer service. "With the use of our own resources and
support from our shareholders, leading financial institutions in Kazakhstan and
China, we plan to introduce new financial products and expand the list of
services available to our customers".
Reference information:
Altyn Bank JSC (SB of China CITIC Bank Corporation Ltd), former HSBC Bank
Kazakhstan JSC (till November 2014) and SB of Halyk Bank of Kazakhstan
JSC (till April 2018). The bank has been present in Kazakhstan since 1998 and
is a universal commercial Bank with a wide range of products and services for
corporate and retail customers. Altyn Bank has 5 branches in Almaty, Astana,
Astana International Financial Center, Atyrau, Aktau and 2 additional branches
in Almaty. On April 24th, 2018, China CITIC Bank Corporation Limited has
become the major shareholder of the Bank as a result of purchase of 50.1%
stake from Halyk Bank of Kazakhstan. At the same time, China Shuangwei
Investment Co., Ltd. acquired 9.9% of the Bank's share capital. The share of
Halyk Bank of Kazakhstan is the remaining 40%.
China CITIC Bank Corporation Ltd was established in 1987. It is part of the
CITIC Group and is the fifth largest Bank in China with assets of over USD 1
trillion. The Bank offers a wide range of services to corporate customers
(corporate and investment banking, international business, factoring, custody
services, etc.) and retail customers (retail banking, credit cards, consumer
loans, asset management, private banking, online banking, etc.).
Halyk Bank of Kazakhstan JSC is a leading financial group in Kazakhstan
operating in various segments, including retail, small and medium business,
corporate banking, insurance, leasing, brokerage, and asset management.
Halyk Bank has been listed on the Kazakhstan Stock Exchange since 1998
and on the London Stock Exchange since 2006. Halyk Bank has the largest
customer base and branch network in the country and operates in Georgia,
Kyrgyzstan, Russia, and Tajikistan.
For additional comments, contact:
Yermek Koichebayev,
Marketing Management
Tel.+7 (727) 356 61 79, ( int. 11 179)
E-mail: Ermek.k@altynbank.kz
unquote
[2019-03-28]