Moody's changes outlook on Development Bank of Kazakhstan's BAA3 ratings to positive

/REUTERS, New York, November 03, 04/ - Moody's Investors Service has changed to positive from stable the outlook on both the Baa3 issuer rating of the Development Bank of Kazakhstan (DBK) and the Baa3 rating of the bank's US$400 million EMTN Programme. Today's rating action follows the recent outlook change to positive from stable on Kazakhstan's Baa3 long- term foreign currency debt ceilings by Moody's sovereign team. DBK's current ratings take into account its key role as the sole development bank in the country, with the principal mission of supporting the development of priority sectors of the Kazakhstani economy, Moody's said. The ratings are fully based on the bank's 100% ownership by the government of Kazakhstan and regional authorities, and the high probability of support in case of need. The ratings have been placed at the sovereign ceiling for such ratings in Kazakhstan, reflecting Moody's belief that the Kazakhstani government is firmly committed to supporting the bank, if necessary. According to Moody's, DBK's strategy is closely related to the objectives of the government. Its main goal is in providing medium- and long-term funding for development projects. However, as stipulated by law, the government may decide only the general direction of the bank's activities but is not allowed to interfere directly in DBK's day-to-day business or influence individual credit decisions. Moody's views this relative independence from the country's political structures positively, as it limits the possibility that political pressure rather than economic viability will be relied on in making business decisions. The Development Bank of Kazakhstan is headquartered in Astana, Kazakhstan and reported total IFRS assets of KZT84.1 billion (US$583.4 million) as of 31 December 2003. [2004-11-03]