Fitch Rates assigned VTB Bank (Kazakhstan) ratings of BBB-, outlook Stable

/IRBIS, September 7, 2010/ - Fitch Ratings has assigned a rating of the subsidiary company of JSC VTB Bank (Kazakhstan, then - VTBK): Long- term Issuer Default ratings (IDR) in foreign and local currency ratings at "BBB-", short-term IDR "F3" support rating "2"and the national long-term rating "AA (kaz)", announced on September 6, Fitch. The outlook for long-term IDR and National Long-term rating - "Stable". As noted, long-term IDR and Support rating of the bank due to the potential support that could be provided if necessary majority shareholder, Bank VTB ("VTB", "BBB"/forecast "Stable"). "The difference between one level of long-term IDR VTBK and VTB reflects the opinion Fitch, that VTB will likely have a high willingness to support VTBK if necessary, on the basis of strategic importance for VTB expansion outside of Russia, as well as the substantial potential reputation risks and risks of adverse effects on other structures VTB in case of default of the subsidiary company, "- it's stated in the message. In addition, support is assessed as likely because of the very small relative size VTBK and examples of support of foreign subsidiaries from VTB in the past. At the same time, Fitch notes some uncertainty about possible support in the light of the fact that the parent and subsidiaries are located in different countries and the fact that any support for VTBK may ultimately require approval from Russian authorities, as the majority owner of VTB (85.5%) is the Russian Federation. "Stable" forecast on ratings reflects VTBK forecast on ratings of the parent bank. VTBK actually started banking operations in May 2009. Business bank on both sides of the balance remained largely underdeveloped at the end of June 2010 (total assets were $45 million, or 0.1% of the assets of the banking sector of Kazakhstan). The credit portfolio was presented to corporate loans amounting to only $7 million (15% of total assets), and 68% of assets were invested in government bonds. The ratio of equity to assets ratio was 86%. VTBK plans to position itself as a universal bank that focuses on segments of the corporate clients and small/medium business (target ratio of corporate and retail clients of approximately 70/30), providing traditional banking services and credit line trade finance clients in the trade/services. The Bank intends to actively grow in the short and medium term, but its size will still be very small relative to the VTB Group. The Individual rating is not assigned because of the limited experience in conducting activities and autonomy in VTBK today. [2010-09-07]