Moody's assigns "В1/NP/E+" ratings to Tsesna bank (Kazakhstan)
05.11.04 11:08
/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]