/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]