Moody's assigns Ba3 rating to CenterCredit International's Tier I loan participation notes; positive outlook
21.02.06 11:39
/REUTERS, February 20, 06/ - Moody's Investors Service has today
assigned a long-term rating of Ba3 to the Tier I securities to be issued on a
limited recourse basis by CenterCredit International B.V. for the sole purpose
of funding a subordinated loan to Kazakhstan's JSC Bank CenterCredit
("BCC"). These notes and the underlying subordinated loan will qualify as
junior subordinated debt as per Moody's classification. The Tier I securities
will be undated perpetual, but will be callable by the issuer commencing from
the tenth anniversary of the date of the issue (subject to regulatory
approval). The amount of the issue has yet to be determined. The outlook for
the rating is positive.
Moody's notes that the rating is based on (i) BCC's fundamental credit
quality, as reflected in its unpublished global local currency rating, (ii) the
extent of the instrument's subordination against various classes of debt and
equity, as well as (iii) the predictability of ongoing payments. The level of
the rating reflects the important role played by the bank in the Kazakh
economy. Moody's considers that the likelihood of BCC receiving support from
the government in case of distress is high, a key driver of the rating.
The rating also takes account of the relative ranking of the Tier I securities,
which will stand senior to equity and preferred stock holders, on a par with
unsecured, perpetual, non-cumulative, subordinated obligations, but behind
most of the senior unsecured and dated non-perpetual subordinated
obligations, in case of liquidation. Moody's also notes that the rating factors
the bank's mandatory obligation to suspend non-cumulative interest
payments (in full or in part) on the underlying loan and on the notes, if it
were in breach of the local prudential capital adequacy and liquidity
requirements or if the payment were to result in such a breach. Historically,
BCC has comfortably complied with the liquidity requirements while its
prudential capital adequacy ratios have been notably tight.
Headquartered in Almaty, Kazakhstan, BCC reported (unaudited) total
consolidated assets of KZT258 billion (US$1.9 billion) under IFRS as at 30
September 2005. Domiciled in the Netherlands, CenterCredit International
B.V. is the special purpose vehicle of BCC.
London
Adel Satel
Managing Director
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Limassol
Andrey Naumenko
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Cyprus Limited
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
[2006-02-21]