Fitch Assigns Kazkommertsbank's Subordinated Notes 'BB' Rating
21.07.06 22:40
/REUTERS, July 21, 06/ - Fitch Ratings has today assigned Kazkommerts
Finance 2 B.V.'s 8.625% USD150 million upcoming issue of limited recourse
loan participation notes due July 2016, with interest rate step-up in 2011,
a Long-term rating of 'BB'. The notes are to be used solely for financing a
subordinated loan to Kazakhstan's Kazkommertsbank ("KKB") under a
subordinated loan agreement. The issuer will only pay noteholders amounts
(principal and interest), if any, received from KKB under the subordinated
loan agreement.
KKB has a foreign currency Issuer Default rating ("IDR") of 'BB+' with Stable
Outlook, and the 'BB' rating of the subordinated notes is in line with Fitch's
standard notching practice for subordinated instruments of issuers with IDRs
of 'BB-' (BB minus) or higher. Where an issuer's IDR is lower than 'BB-' (BB
minus), notching for subordinated issues may widen, depending on Fitch's
assessment of expected recoveries. For further information, please refer to
Fitch's announcements of 27 July 2005 ('Fitch Launches Recovery Rating
and Issuer Default Rating Scales') and 27 September 2005 ('Fitch Releases
Report on Recovery Ratings Methodology for Banks'), available on
www.fitchratings.com.
The issuer's claims in relation to repayment of the subordinated loan will be
junior to those of all senior claims and will rank at least pari passu with
the claims of other subordinated creditors of KKB. The interest rate will be
fixed, with a step-up after five years. KKB will have the right to prepay the
subordinated loan five years before maturity.
KKB (other ratings foreign currency Short-term 'B', local currency Issuer
Default 'BBB-' (BBB minus)/Stable Outlook, local currency Short-term 'F3',
Individual 'C/D', Support '3') was the largest commercial bank in Kazakhstan
by IFRS assets at end-2005 and has top three positions in all major market
segments.
Contact:
Alexei Kechko, James Watson,
Moscow, Tel: +7 495 956 9901.
Media Relations:
Julian Dennison,
London, Tel: +44 20 7862 4080;
Alla Izmailova,
Moscow, Tel: +7 495 956 9903
[2006-07-21]