S&P leaves unchanged ratings of Development Bank of Kazakhstan and Sovereign wealth fund Samruk-Kazyna after transfer of bank shares to National managing holding Baiterek

/Standard & Poor's, London, June 11, 13, heading by KASE/ – The government of Kazakhstan has announced that it will transfer its shares in the Development Bank of Kazakhstan (DBK; BBB+/Stable/A-2) and several other development agencies to a new unrated holding company, Baiterek, from government-owned holding company Samruk-Kazyna (SK; BBB+/Stable/A-2). Standard&Poor's Ratings Services today stated that the share transfer would not affect the ratings on either DBK or SK, which are equalized with the ratings on their sole owner, the Republic of Kazakhstan. According to a May 22 presidential decree, the government of Kazakhstan will establish a new national holding company Baiterek, which will consolidate government-owned national development institutions, including DBK. Baiterek is being established to support the government's diversification and investment agenda. The government will transfer its shares in DBK to Baiterek from Samruk-Kazyna by the end of the year but will retain full ownership of DBK. SK will receive other assets from the government in exchange for the shares in the development agencies that are being transferred away from it. We do not expect the transfer to affect our view of the "almost certain" likelihood that the government of Kazakhstan would provide timely and extraordinary support to DBK and SK. We understand that DBK will remain the government's primary vehicle for providing long-term credit to the nonextractive sectors of the Kazakh economy and will continue to play a key role in implementing its medium-term strategic development and investment plan. We also understand that the government will remain as closely involved in DBK's strategy as it has been since DBK was created in 2001. The transfer of assets accounts for a very small share of SK's total assets. Thus, the transfer will not affect SK's strategic role. Indeed, we understand that the transfer of development assets out of SK and the planned sale of its remaining stakes in the financial institutions are intended to narrow SK's focus on industrial entities. Primary Credit Analyst: Ana Jelenkovic, London, (44) 20-7176-7116; ana.jelenkovic@standardandpoors.com Secondary Contact: Kai Stukenbrock, Frankfurt, (49) 69-33-999-247; kai.stukenbrock@standardandpoors.com Additional contacts: Financial Institutions Ratings Europe; FIG_Europe@standardandpoors.com [2013-06-12]