S&P puts KazEximbank on watch

S&P said it placed the B- long-term counterparty credit rating on Eximbank Kazakhstan (KazEximbank) on CreditWatch with negative implications.

The agency also said it affirmed the bank’s C short-term rating.

S&P also said it lowered the Kazakhstan national scale rating on KazEximbank to kzB+ from kzBB- and placed it on CreditWatch with negative implications.

The negative watch reflects the marked change in the bank's funding structure in 2016 and associated sharp reduction in its liquid assets, which left it less capable of meeting unplanned fund outflows than its domestic peers, S&P explained.

The bank continues to comply with its minimum regulatory liquidity ratios, the agency added, and no significant near-term default risk is expected.

This is helped by the absence of large bond maturities in 2017 and very limited use of confidence-sensitive retail deposits, S&P said.

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