ANALYSIS: Financial condition of BTA Bank JSC (Kazakhstan)

28.04.09 18:25
/IRBIS, April 28, 09/ - April 24, 2009 BTA Bank JSC (Almaty) announced on several creditors` requirements regarding foreign debt prescheduled maturity. In this regard, the bank decided to stop all main debt payments. The measure will be effective until the bank agrees and realizes together with all creditors and investors reasonable, transparent and effective program on current debt management. The same day, Fitch Ratings downgraded the long-term issuer default rating ("RDE") of JSC BTA Bank from the "CC" level to "RD" (restricted default) and excluded ratings from the Rating Watch list with a "negative". RDE of the bank will remain at "RD" level, until it completes restructuring of the current debt and be able to follow new conditions, agreed with the creditors. Service credit rating Standard & Poor's made the same and reduced long- term and short-term counterparty credit ratings of Kazakhstan JSC BTA Bank with the SS / C" to "D" (default), Ratings were removed from CreditWatch list with negative outlook, which they had been included on April 20, 2009. Classification "D" is assigned when Standard & Poor's believes that there is a default as a whole, ie, when the borrower fails to fulfill all or almost all of its obligations. The definition of default applies to rated, and to not rated obligations. In addition, Standard & Poor's are considering a proposal to repurchase (distressed exchange offer) for the restructuring of debt as the equivalent of a default by the issuer - even when investors are technically this proposal on a voluntary basis and defaults in its legal sense does not occur. According to Standard & Poor's, the total debt of the bank in foreign currency amounts to about $12 bn. with approximately $4 bn. maturity in 2009. The message says that, the Agency understand that the BTA is still continues to serve the retail deposits and that the state holding Samruk-Kazyna, the main shareholder of the bank (78%) were not ready to support the BTA. April 24, 2009 BTA Bank JSC disseminated the press release on results of activity for Q1 2009. According to the message, the bank had net loss, amounting KZT261.5 bn. in January-March 2009 against net income, amounting KZT5.219 bn. for the same period of 2008. At that, its assets as on April 1, 2009 made KZT3,797.4 bn. compared to KZT2,915.1 bn. as on beginning of current year, liabilities - KZT3,430.2 bn. (KZT2,498.2 bn.), shareholders equity - KZT367.3 bn. (KZT416.9 bn.), authorized capital - KZT516.6 bn. (KZT304.5 bn.). In this regard, IRBIS IAFM evaluated financial indicators of BTA Bank JSC on the basis of its consolidated financial statements for 2008 (http://www.kase.kz/files/emitters/BTAS/btasf_2008.pdf) - IRBIS IAFM didn't possess more acute data by results of Q1 2009. Evaluation was conducted in two directions. Analysis of the bank on basic coefficients didn't educe serious defections of financial condition. But detailed examination according to V. Kromonov methodology, singled out separate moments, telling on problems in assets quality and bank's reliability status. Analysis of financial condition of BTA Bank JSC, compiled by IRBIS IAFM is available at http://www.kase.kz/files/mix/analys_btas280409.pdf [2009-04-28]