S&P affirms Mortgage Guarantee Fund of Kazakhstan

Standard & Poor's said it affirmed its BB long-term credit and kzA+ Kazakhstan national scale ratings on the Mortgage Guarantee Fund of Kazakhstan (JSC).

The outlook remains positive.

The agency said the ratings reflect Mortgage Guarantee Fund's weak financial performance, stemming from the need to increase personnel spending to keep up with the labor market; volatile returns on investments; very short track record; and S&P's concerns about the long-term sustainability of the entity's current public policy role.

The support Mortgage Guarantee Fund receives from the Kazakh government, the company's sound liquidity and the current absence of debt soften rating constraints, S&P said.

The positive outlook incorporates the company's adherence to stable financial indicators without recourse to debt and the agency's expectation that the government will enhance its ongoing financial support to Mortgage Guarantee Fund in the next few months in an updated government program.

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