S&P leaves Kazkommertsbank international debt rating unchanged

/REUTERS, London, February 2, 05/ - Following statement was released by the ratings agency today. BULLETIN: KAZKOMMERTS INTERNATIONAL DEBT RATING UNCHANGED AFTER PROPOSED ISSUE INCREASE Standard & Poor's Ratings Services said today that its "BB-" senior unsecured debt rating on the $350 million 7.0% notes due 2009 issued by Kazkommerts International B.V., a Netherlands-based special-purpose vehicle, remain unchanged. This follows a proposed increase in the issue amount to $500 million. The notes are guaranteed by Kazakhstan-based Kazkommertsbank (JSC) (KKB; BB-/Positive/B). The ratings on KKB reflect the improving Kazakh economic environment, the bank's strong domestic franchise, more diversified funding profile, and rapid loan growth. KKB has been using Kazakhstan's improved economic prospects to its advantage, attracting primary funds as well as longer-term international debt and growing its profitable lending business. The decision of the European Bank for Reconstruction and Development in 2003 to invest into the equity of KKB has improved KKB's credit profile. Although the Kazakh economy has been showing positive trends since 2000, the bank retains significant, but decreasing, concentrations in loans and funding in a high-risk economic and banking environment. Its prudent practice of taking significant loan-loss provisions and collateral for potential problems stemming from the high loan growth mitigates these risks. [2005-02-02]