Fitch ups Kazakh BTA Bank

Fitch Ratings said it upgraded the ratings of Kazakh BTA Bank and its majority-owned subsidiary, BTA Belarus.

Kazakh BTA Bank's long-term foreign-currency issuer default rating was upgraded to B- from RD (or restricted default), long-term local-currency issuer default rating to B-, short-term foreign-currency issuer default rating to B from RD, short-term local-currency issuer default rating to B from RD, senior unsecured debt rating to B- from C with a recovery rating of RR4 and subordinated debt to CC with a recovery rating of RR6.

BTA Belarus's long-term foreign-currency issuer default rating was upgraded to B- from CCC and short-term foreign-currency issuer default rating to B from C.

The outlook is stable.

The ratings reflect significant uncertainty surrounding the value of its assets, Fitch said, and concerns about the viability of its business model, given structural balance sheet weaknesses and the erosion of its market positions since 2008.

The ratings also account for the long-term nature of its current funding structure and support provided to the bank by its majority shareholder, Sovereign Wealth Fund Samruk-Kazyna, the agency said.

The value of its assets is a key rating concern, Fitch added.

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