Fitch upgrades ratings of Development bank of Kazakhstan and Halyk bank

/REUTERS, London, October 28, 04/ - Fitch Ratings, the international rating agency, has today upgraded Development Bank of Kazakhstan's ("DBK") ratings to Long-term 'BBB-' (BBB minus) from 'BB+' and Short-term 'F3' from B'. Fitch has also changed DBK's rating Outlook to Stable from Positive and Support rating to '2' from '3'. At the same time, the agency has upgraded the Long-term rating of Halyk Bank to 'BB' from 'BB-' (BB minus) and changed the Outlook to Stable from Positive. These upgrades follow the upgrade of the Republic of Kazakhstan's Long-term foreign currency rating to 'BBB-' (BBB minus) from 'BB+' and change of Outlook to Stable from Positive, announced yesterday. Halyk Bank is rated Short-term 'B', Individual 'D' and Support '3'. The action on DBK's ratings reflects Fitch's opinion that the bank's rating is linked to that of the sovereign due to its 83%-majority ownership by the government of the Republic of Kazakhstan (the balance is held by 14 regional governments and the cities of Astana and Almaty) and the bank's important role in developing the country's production infrastructure. Halyk's Long-term rating is at the support floor that reflects Fitch's view of the likelihood of support from the Kazakhstani authorities in case of need, given Halyk's importance to the Kazakhstani banking sector. The bank is the third largest bank in Kazakhstan by assets and, in keeping with its roots as the former state savings bank, has the largest branch network in the country. [2004-10-29]