S&P have raised the long-term credit rating on liabilities in national currency of JSC Development Bank of Kazakhstan to the level of BBB; forecast - stable

/IRBIS, June 17, 2010/ - Standard & Poor's rating service have raised its long- term credit rating on liabilities in national currency SC "Development Bank of Kazakhstan" (KDB) from BBB-to BBB, stated in the report circulated on June 16 by S&P. At the same time, S&P affirmed the issuer credit ratings, formerly assigned to this bank: long-term rating of 'BBB-' on liabilities in foreign currency and short- term rating of 'A-3. "The rating action reflects our view of raising the profile of BRC for the Government of the Republic of Kazakhstan (rating on liabilities in foreign currency: VVV-/Stabilnyy/A-3; rating on liabilities in national currency: VVV/Stabilnyy/A-3; national scale rating: kzAAA) and strengthening the connection with it, as well as "almost unconditional" probability of getting extra support from the state. In accordance with our criteria for assigning ratings to entities associated with the state (see "Criteria and articles relevant to the topic of this publication), our opinion on the "almost absolute" likelihood of receiving government support involves alignment issuer rating with ratings of the government ", - stated in the message. As indicated, almost unconditional likelihood of BRC emergency support from the state reflects the view of S&P on a clearly defined, the strategic role of the Bank in addressing the challenges of public policy and his close relationship with the Government of the Republic of Kazakhstan. Since the BRC is 100% owned by the state, he can count on strong support from non-consensual government. "BRK - basic guide long-term credit flows to non-extractive industries of Kazakhstan's economy, whose development is one of the most important tasks of the national development strategy. From the beginning of the global financial crisis on the BRC was also assigned one of the key functions in support of project financing. The State does not act as guarantor the obligations of BRC, but maintains the capitalization of the bank at a level commensurate with the scale of its activities, with the help of large budget transfers ", - stated in the message. It is noted that the "Stable" outlook on both ratings reflects the BRC similar outlook on the ratings of the Republic of Kazakhstan. The rating may be raised in case of raising the sovereign rating. As forecast, it will also reflect the outlook on sovereign ratings. S&P analysts believe that the BRC can count on the continued strong support of the State, given the long-term commitment of the Government decision to increase the bank's capital. There has been no change in policy and regulatory system to blunt a key role in the bank sold the government national development plans in the foreseeable future is expected. However, a departure from the BRC as a tool of public policy, as well as signs of the weakening of the Bank's public support could lead to lower ratings. [2010-06-17]