S&P assigns ratings to Eurasian bank JSC (Kazakhstan) "В/В" by international scale and "kzBB+" by national scale, prediction"Stable"

/Standard & Poor's, London, November 9, 06/ - Standard & Poor's Ratings Services said today that it assigned its 'B/B' long- and short-term counterparty credit ratings to Kazakhstan-based JSC Eurasian Bank. At the same time, it assigned its 'kzBB+' Kazakhstan national scale rating to the bank. The outlook is stable. The ratings on Eurasian bank reflect its modest customer franchise, short track record of the new strategy, rapid loan growth, and limited financial flexibility in the high-risk economic environment of the Republic of Kazakhstan (foreign currency, BBB/Stable/A-3; local currency, BBB+/Stable/A-2). "Positive rating factors include its wealthy and supportive shareholders, diversifying customer base, good profitability, adequate capitalization, and reduction of individual loan concentrations," said Standard & Poor's credit analyst Annette Ess. The stable outlook reflects our expectations that the bank will benefit from the development of the financial sector in Kazakhstan, supported by the country's good economic prospects, and that the new management team will be successful in implementing its strategy. "A positive rating action will depend on further development of the bank's franchise, improvements in capitalization, profitability, and funding diversification," added Ms. Ess. Ratings could be pressured downward by an inability to manage rapid asset growth, deterioration in asset-quality indicators, reduced capitalization, and a significant decline in profitability. [2006-11-09]