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Fitch upgrades Kazakhstan's ATFBank on improved solvency

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Fitch upgrades Kazakhstan's ATFBank on improved solvency

Fitch Ratings on Dec. 15 upgraded KNG Finance LLC unit ATFBank JSC's long-term foreign- and local-currency issuer default ratings to B from B- and its national long-term rating to BB+(kaz) from BB-(kaz), with stable outlooks.

The rating agency also upgraded the Kazakhstan-based bank's senior unsecured debt ratings to B/BB+(kaz) from B-/BB-(kaz), its perpetual debt rating to CCC from CC and its viability rating to "b" from "b-," and affirmed its B short-term issuer default rating, 5 support rating and No Floor support rating floor.

Fitch said the upgrade of ATFBank's long-term issuer default ratings reflects the upgrade of its viability rating, which in turn reflects the recent improvement in the bank's solvency as a result of capital support from the National Bank of Kazakhstan. The agency noted, however, that high funding concentrations, weak core profitability and high impaired loans continue to weigh on the bank's ratings.

In addition, Fitch affirmed Bank CenterCredit JSC's B long-term foreign- and local-currency issuer default ratings, B short-term issuer default rating, BB+(kaz) national long-term rating, B/BB+(kaz) senior unsecured debt ratings, CCC perpetual debt rating, "b" viability rating, 5 support rating and No Floor support rating floor, with stable outlooks on the long-term issuer default ratings and national long-term rating.

The agency also affirmed Subsidiary Bank Sberbank of Russia JSC's BB+ long-term foreign- and local-currency issuer default ratings, B short-term issuer default rating, AA-(kaz) national long-term rating, BB+/AA-(kaz) senior unsecured debt ratings, "b+" viability rating and 3 support rating, with positive outlooks on the long-term issuer default ratings and national long-term rating.

At the same time, Fitch maintained on Rating Watch Positive JSC Halyk Savings Bank of Kazakhstan unit JSC Altyn Bank's BB long-term foreign- and local-currency issuer default ratings, B short-term issuer default rating, A+(kaz) national long-term rating and 3 support rating.