Moody's raises Kazkommerts Int'l senior rating

/REUTERS, New York, March 23, 04/ -The following statement was released by the rating agency. MOODY'S UPGRADES KAZKOMMERTS INTERNATIONAL B.V. (Kazakhstan) SENIOR BOND to Baa2 AND ASSIGNS Baa2 AND Baa3, RESPECTIVELY TO UPCOMING SENIOR AND SUBORDINATED LOAN PARTICIPATION NOTES NEW YORK, March 23 - Moody's Investors Service has assigned a rating of Baa2 (stable outlook) to the upcoming US$200 million issue of senior unsecured notes by Kazkommerts International B.V. The notes, maturing in 2009, are fully guaranteed by JSC Kazkommertsbank (KKB) of Kazakhstan. At the same time, Moody's has upgraded to Baa2 (stable outlook) both previously issued senior unsecured notes of the same issuer (USD 200 million Global Bonds maturing 8 May 2007 and USD 500 million Global Bonds maturing 16 April 2013). The subordinated loan participation notes due 2011 issued by, but without recourse to, Citigroup Global Markets Deutschland AG & Co. KGaA for the sole purpose of financing a loan to KKB are rated at Baa3 (stable outlook). The holders of the subordinated notes will be relying for the repayment solely and exclusively on the ability of KKB to pay under the subordinated loan agreement, and on the credit and financial standing of the latter in respect of the financial servicing of the notes. The ratings of the senior unsecured bond issues have pierced Kazakhstan's sovereign ceiling for bonds of Baa3, while the subordinated debt issue has been placed at the sovereign ceiling. The level of the ratings reflects the important role the bank plays in the country's economy. Moody's notes that the likelihood of Kazkommerstbank receiving support from the government in case of distress is very high and is the primary driver of the ratings. The ratings also take into account the fact that Kazkommertsbank is the largest bank in Kazakhstan, and over a relatively short period has been able to develop an important franchise in the domestic corporate market. Kazkommertsbank is headquartered in Almaty, Kazakhstan, and had total consolidated assets of US$2.92 billion at 31 December 2003. Limassol Adel Satel General Manager Financial Institutions Group Moody's Investors Service Cyprus Limited 357-25-586586 Limassol Pavel Simacek Vice President - Senior Analyst Financial Institutions Group Moody's Investors Service Cyprus Limited 357-25-586586 [2004-03-24]