Moody's assigns "В1/NP/E+" ratings to Tsesna bank (Kazakhstan)

/REUTERS, New York, November 5, 04/ - Moody's Investors Service has assigned B1 long-term and Not Prime short-term ratings for foreign currency deposits and an E+ Financial Strength Rating (FSR) to Tsesna Bank of Kazakhstan. The outlook on all ratings is stable. According to Moody's, the B1/NP foreign currency deposit ratings factor the very low likelihood of any external support from the government in the event of distress, given Tsesna Bank's limited importance to the banking sector and economy as a whole -- with a market share in total assets, customer loans, equity and customer deposits of 0.7%, 0.8%, 0.7% and 0.9%, respectively, as of Q3 2004. Although possible support from the owners, if needed, cannot be ruled out, Moody's believes that the extent of such support may be only limited and its timeliness somewhat uncertain. The E+ FSR reflects the bank's comparatively small size, which, combined with its regional focus and underdeveloped territorial coverage, limits its capacities to service corporate customers and constrains its franchise. However, the FSR is supported by relatively good client diversification of the loan portfolio, good reported asset quality, prevailing strong profitability and satisfactory capitalisation and liquidity, Moody's noted. Tsesna Bank is headquartered in Astana, Kazakhstan and reported total IFRS assets of KZT17.0 billion (US$124.9 million) at 31 August 2004. [2004-11-05]