S&P lowers Development Bank of Kazakhstan

Standard & Poor’s said it lowered the long- issuer credit rating on Development Bank of Kazakhstan to BBB- from BBB, along with its short-term issuer rating to A-3 from A-2.

The outlook is negative.

S&P also said it lowered the Kazakhstan national scale rating on the bank to kzAA from kzAA+.

The downgrade reflects a similar downgrade of the sovereign ratings on Kazakhstan, S&P said.

The agency said it equalizes the ratings on the bank with those on Kazakhstan as there is an almost certain likelihood that the government will provide timely and extraordinary support to the institution in a potential stress scenario.

The bank’s ratings cannot be higher than those on the sovereign due to the integral link between the institution and the government of Kazakhstan, S&P said.

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