Subsidiary of Development Bank of Kazakhstan DBK-Leasing informed Moody's Investors Service changed outlook on company and its bonds ratings from "Stable" to "Negative"

/KASE, December 6, 11/ - Subsidiary of Development Bank of Kazakhstan DBK-Leasing (Astana), bonds of which are officially listed on Kazakhstan Stock Exchange (KASE), provided to KASE the following press release of Moody's Investors Service of December 2, 2011 in English. Below is Moody's Investors Service press release in English, provided to KASE by Subsidiary of Development Bank of Kazakhstan DBK-Leasing. Moody's changes outlook on DBK Leasing's Ba3 rating to negative, from stable London, 02 December 2011 - Moody's Investors Service has today changed to negative from stable the outlook on the following ratings of DBK Leasing: Ba3 long-term local and foreign currency issuer ratings, the provisional (P)Ba3 local currency rating assigned to the issuer's KZT15 billion (US$102 million) domestic bond programme, and the Ba3 local currency debt rating assigned to the issuer's senior unsecured KZT5 billion (US$34 million) Medium-Term Note (MTN) issued under this programme. DBK Leasing's short-term local and foreign currency ratings of Not Prime remained unchanged. Moody's affirmation of DBK Leasing's ratings is based on the issuer's audited financial statements for 2010 prepared under IFRS, and its H1 2011 unaudited results prepared under local GAAP. RATINGS RATIONALE "Moody's decision to change the outlook on DBK Leasing's ratings to negative from stable is driven by the significant reduction in its safety buffers in the form of capital and loan loss reserves that materialised over time as a result of worsening asset quality and still weak profitability," says Maxim Bogdashkin, a Moody's Assistant Vice-President and lead analyst for the issuer. By H1 2011, DBK Leasing's underdeveloped underwriting practices and seasoning leasing portfolio, in conjunction with a recently challenging economic environment in Kazakhstan, led to significant asset quality deterioration. Moody's observes that as at H1 2011, non-performing loans (defined as 90+ days overdue) accounted for 35% of total loans compared to only 7.3% of total loans as at YE2009. As a result, the issuer's safety buffers have diminished, with the ratio of shareholders' equity to total assets dropping to 17% as at H1 2011 (YE2010: 22% and YE2009: 24%), while the level of loan loss reserves remained largely inadequate at around 8% of total loans. However, Moody's notes that DBK Leasing's ratings continue to benefit from very high probability of ongoing and extraordinary support from its parent (state- owned Development Bank of Kazakhstan, Baa3, stable outlook) as DBK Leasing: (i) is fully owned and more than 80% funded by the parent, (ii) fits the parent's strategy, thereby complementing its core business, and (iii) is comparatively small and thus more easily supported by the parent. According to DBK Leasing and its parent, the former could receive additional capital in 2012 that would somewhat strengthen its capital cushion. If this does not materialise or if the resultant safety buffers in the form of capital and loan loss reserves are insufficient compared with the issuer's asset quality at that time, further negative pressure would be exerted on DBK Leasing's ratings which could lead to a downgrade. PRINCIPAL METHODOLOGIES The methodologies used in this rating were Analyzing The Credit Risks Of Finance Companies published in October 2000, and Incorporation of Joint- Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies. Headquartered in Astana, Kazakhstan, DBK leasing reported total assets of KZT35 billion (US$238 million) under unaudited IFRS as of H1 2011. The issuer recorded a net loss of KZT3 billion (US$20 million) in H1 2011. REGULATORY DISCLOSURES For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. 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Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information. Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating. Maxim Bogdashkin Asst Vice President - Analyst Financial Institutions Group Moody's Interfax Rating Agency 7th floor, Four Winds Plaza 21 1st Tverskaya-Yamskaya St. Moscow 125047 Russia Telephone: +7 495 228 6060 Facsimile: +7 495 228 6091 Yaroslav Sovgyra Associate Managing Director Financial Institutions Group Releasing Office: Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 [2011-12-06]