Banks positively mark Moody's intentions to expand its activities

/INTERFAX-KAZAKHSTAN, Almaty, June 9, 04/ - Banking sector of Kazakhstan favors plans of Moody's Interfax to expand its activities at Kazakhstan market. "Planned presence of Moody's interfax at Kazakhstan market will be a one step ahead for our country", Alexandr Pavlov, the Board of Directors of Halyk bank, told Interfax Kazakhstan. He also noted that Moody's Investors Service agency working with Kazakhstan for several years was the first to assign an investment grade to Kazakhstan. At the same time, Pavlov noted that meeting of Kazakhstan president N.Nazarbayev with head of Moody's Corporations John Reserford reflect good relationships between Kazakhstan and international financial organizations. Interviewee told that positive moment is that international ratings agencies when performing ratings actions take into account "variety of development factors in the country: economical, political and social". He is also confident that Moody's Interfax will promote better opportunities for Kazakhstan issuers to enter international capital markets. In particular, according to him, companies will be able to borrow funds at lower rates and for a longer term. A. Pavlov has positively marked the deal of acquisition of a stake in Rating Agency Interfax by Moody's and told that this circumstance evidence of interest of leading international financial organizations to concrete organizations at the territory of the CIS. In his turn, Nurtaza Baitenov, deputy chairman of the Alliance bank, commenting on Moody's Interfax further expansion to cover Kazakhstan told that presence of a leading ratings agency in Kazakhstan is very positive and appropriate step". N.Baitenov noted that currently Kazakh economy is booming and this fact evidence that Kazakhstan borrowers are ready to enter international capital markets. According to Asset Dutbayev, corporate finance director in Bank CenterCredit told that rated companies have more chances to get recognized at international markets. in particular he noted that thanks to Kazakhstan's economy growth, many local companies are eyeing on geographical expansion. Dautbayev supposed that thanks to Mood's presence, not only major players from Kazakhstan but medium and small businesses would be easily recognizable at international capital markets. He also thinks that research of risks performed by Moody's Interfax may attract additional investors from abroad. According to Dautbayev, this fact also will promote securities market at Kazakhstan to certain degree. Halyk bank of Kazakhstan is one of the third largest banks of the republic, Alliance bank and Bank CenterCredit are among top ten. As informed, international ratings agency Moody's and international group Interfax concluded a deal, under which Moody's holds a controlling package of shares. The company has a new name of Moody's Interfax Ratings Agency. John Reserford stated that Moody's Interfax plans to expand its activities and cover first of all Kazakhstan, Azerbaijan, Ukraine and Byelorussia. On Wednesday N.Nazarbayev met with J. Reserford and Mikhail Commisar, the chairman of the Board of Directors of Interfax, in Astana. [2004-06-09]