S&P Global Ratings on Dec. 28 downgraded JSC Kazinvestbank's long- and short-term counterparty credit ratings to D/D from B-/C and its national scale rating to D from kzB+ following the National Bank of Kazakhstan's decision to revoke its license.
The agency believes that the bank is currently incapable of meeting its financial liabilities to its counterparties in accordance with the terms of the respective agreements.
Kazinvestbank, which was placed under provisional administration pending the appointment of a liquidation committee, had faced an acute liquidity shortage in December due to deposit and interbank funding withdrawals as well as limited funding sources. The lender's official request to the regulator for the provision of short-term liquidity had been rejected, S&P noted.
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