Fitch affirms ratings of ATFBank, Development Bank of Kazakhstan and KazAgroFinance, ATFBank ratings outlook revised from "Stable" to "Positive"
24.12.10 11:29
/Fitch Ratings, London-Moscow, December 22, 10, Fitch Ratings English
translation, KASE headline/ - Fitch Ratings has revised ATF Bank's Outlook to
Positive from Stable and affirmed its ratings. The agency has also affirmed the
ratings of two other Kazakh banks, Development Bank of Kazakhstan (DBK) and
KazAgroFinance (KAF). The rating actions follow Fitch's recent revision of the
Outlooks on Kazakhstan's ratings to Positive from Stable (see 'Fitch Revises
Kazakhstan's Outlook to Positive; Affirms 'BBB-', dated 20 December 2010 and
available at www.fitchratings.com. A summary of rating actions is presented at
the end of this commentary.
ATF Bank's IDRs and Support Rating are driven by potential support from its
parent UniCredito Italiano (UCI, rated 'A'/Negative/'F1'). Given UCI's ability
and propensity to provide support, Fitch believes there is a high probability
that support would be forthcoming, if required. However, the Country Ceiling of
Kazakhstan, which reflects transfer and convertibility risks, constrains the
bank's Long-term foreign currency IDR as it limits the extent to which support
from the foreign shareholder can be factored into the ratings. ATF Bank's 'BBB'
Long-term local currency IDRs also take into account Kazakhstan's country risks.
Hence, an upgrade of the sovereign IDR and, consequently the Country Ceiling,
could result in ATF Bank's IDRs being upgraded. ATF Bank was the fifth-largest
bank in Kazakhstan as at end-Q310. It is primarily a corporate bank but has
developed a reasonable network and retail deposits franchise.
The ratings of DBK were affirmed at their current level, reflecting Fitch's
expectation that the bank's ratings will likely not change if Kazakhstan's
Long- term IDRs are upgraded to 'BBB'. This in turn mirrors the agency's usual
practice of notching the ratings of state-owned banks down from their respective
sovereigns, particularly at the higher rating levels.
DBK's ratings continue to be underpinned by Fitch's view on the probability that
it will be supported by the state due its exceptional mandate as a development
institution, still relatively moderate size and 100% state control via the
Sovereign Wealth Fund Samruk-Kazyna.
KAF's ratings consider its less prominent policy role and lesser importance for
the country's economy relative to DBK. They also take into account the legacy of
defaults of other Kazakh financial companies during 2009. At the same time, the
company's ratings continue to factor in a moderate probability of government
support in light of state ownership of KAF, the company's small size (and hence
cost of support) and the government financial assistance which has been made
available to date.
DBK was founded to foster the growth of non-extracting industries in Kazakhstan.
Its owner, Sovereign Wealth Fund Samruk-Kazyna, is wholly owned by the state.
KAF is a non-banking financial institution providing predominantly finance
leases to domestic agricultural industry. KAF is a subsidiary company of the
state-owned JSC National Holding Kazagro.
The rating actions are as follows:
Development Bank of Kazakhstan
Long-term foreign currency IDR affirmed at 'BBB-', Outlook Stable
Short-term foreign currency IDR affirmed at 'F3'
Long-term local currency IDR affirmed at 'BBB', Outlook Stable
Short-term local currency IDR affirmed at 'F3'
Support Rating affirmed at '2'
Support Rating Floor affirmed at 'BBB-'
Senior unsecured debt rating affirmed at 'BBB-'
KazAgroFinance
Long-term foreign currency IDR affirmed at 'BB', Outlook Stable
Short-term foreign currency IDR affirmed at 'B'
Long-term local currency IDR affirmed at 'BB', Outlook Stable
National Long-term rating affirmed at 'A(kaz)'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Senior unsecured debt rating affirmed at 'BB'
ATF Bank
Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Positive
from Stable
Short-term foreign currency IDR affirmed at 'F3'
Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Positive from
Stable
Senior unsecured debt affirmed at 'BBB'
Subordinated debt affirmed at 'BBB-'
Support Rating affirmed at '2'
Individual Rating 'D/E' unaffected by the current review
National Long-term rating affirmed at 'AAA(kaz)'; Outlook Stable
National senior unsecured debt rating affirmed at 'AAA(kaz)'
National subordinated debt affirmed at 'AA+(kaz)'
Contacts:
Primary Analyst on KAF and DBK, Roman Kornev, Analyst +7 495 956 7016
Secondary Analyst on KAF and DBK, Maxim Miller, Director +7 495 956 9901
Primary Analyst on ATF Bank, Maxim Miller, Director +7 495 956 99 01
Secondary Analyst on ATF Bank, Anton Naberoukhin, Analyst, +7 495 956 9901
Media Relations, Anna Bykova, Moscow + 7 495 956 9903/9901,
anna.bykova@fitchratings.com
[2010-12-24]