S&P affirms 12 Kazakh banks

Standard & Poor's said it affirmed its counterparty credit ratings on 12 Kazakh banks: Kazkommertsbank (JSC), Halyk Savings Bank of Kazakhstan, BTA Bank JSC, ATF Bank, Temirbank JSC, BTA Ipoteka Mortgage Co., JSC Nurbank, JSC Eurasian Bank, Joint Bank Lariba Bank (JSC), Tsesna Bank, KazInvestBank and Alliance Bank JSC.

The outlooks on the individual banks are unchanged.

The agency said that the rating affirmations follow the outlook revision on the Republic of Kazakhstan to negative from stable, adding that the sovereign outlook revision reflects the increasing risk that deteriorating bank asset quality in combination with funding challenges will weaken the country's fiscal and external balance sheets and impair policy flexibility and growth prospects.

Although asset quality continues to deteriorate, S&P said it considers that problems are manageable, due to the loss absorption capacity of the banks and ongoing state support.

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