S&P downgrades KazInvestBank

S&P said it lowered the long-term counterparty credit rating on KazInvestBank to D from B-, along with its short-term counterparty credit rating to D from C.

The agency also said it lowered the Kazakhstan national scale rating on the bank to D from kzB+.

S&P also said it lowered the ratings on KazInvestBank's rated senior unsecured and subordinated bonds to D from B- and CCC, respectively.

The downgrades follow the National Bank of Kazakhstan's revocation Dec. 27 of KazInvestBank's banking license, the agency explained.

The regulator's action means that KazInvestBank is currently unable to fulfill its obligations to its counterparties according to the terms of the respective agreements, S&P said.

KazInvestBank had faced an acute liquidity shortage in December 2016, which was caused by deposit and interbank funding withdrawals and limited funding sources for the bank in the market, the agency said.

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