Moody's cuts some Kazakh banks

Moody's Investors Service said it downgraded the deposit and debt ratings of 15 financial institutions in Kazakhstan while the deposit and debt ratings of five financial institutions previously on review for downgrade were confirmed.

The deposit and debt ratings of four financial institutions remain on review for possible further downgrade, while the ratings of one bank are on review with direction uncertain, the agency added.

The outlook on all Kazakh financial institutions' deposit and debt ratings, except for those on review, is negative, Moody's said.

At the same time, the rating agency said it downgraded the bank financial strength ratings of six banks and confirmed the others of three banks while the BFSRs of the remaining six Kazakh financial institutions previously not on review were affirmed.

Moody's said that the rating downgrades reflect the increasingly negative impact of the global economic crisis on the Kazakh economy and its financial institutions.

Affected ratings include:

ATF Bank's BFSR: downgraded to E+ (mapping to a Baseline Credit Assessment of B2) from D- (mapping to a Baseline Credit Assessment of Ba3); local currency deposit rating: downgraded to Ba1 from Baa2; foreign currency senior unsecured debt rating: downgraded to Ba1 from Baa2; junior subordinated foreign currency debt rating: downgraded to Ba3 from Ba1; the local currency deposit rating benefits from a high probability of support from its ultimate parent, UniCredit, and a low systemic support probability that result in a four-notch uplift from the Baseline Credit Assessment of B2; and the outlook is negative;

Temirbank's BFSR: unchanged at E (mapping to a Baseline Credit Assessment of Caa1), stable outlook; local and foreign currency deposit ratings: downgraded to B3 from B2; foreign currency senior unsecured debt rating: downgraded to B3 from B2; subordinated foreign currency debt rating: downgraded to Caa1 from B3; the local currency deposit rating benefits from a high probability of support from its parent, BTA Bank, that results in a one-notch uplift from the Baseline Credit Assessment of Caa1; and the bank's deposit and debt ratings remain on review for possible further downgrade;

Kazkommertsbank's BFSR: downgraded to E+ (mapping to a Baseline Credit Assessment of B2) from D- (mapping to a Baseline Credit Assessment of Ba3); local and foreign currency deposit ratings: downgraded to Ba3 from Ba1; foreign currency senior unsecured debt rating: downgraded to Ba3 from Ba1; subordinated debt rating: downgraded to B1 from Ba2; junior subordinated debt rating: downgraded to B3 from Ba3; the local currency deposit rating benefits from a moderate systemic support probability that results in a two-notch uplift from the Baseline Credit Assessment of B2; and the outlook is negative;

Bank CenterCredit's BFSR: downgraded to E+ (mapping to a Baseline Credit Assessment of B1) from D- (mapping to a Baseline Credit Assessment of Ba3); local and foreign currency deposit ratings: downgraded to Ba3 from Ba1; foreign currency senior unsecured debt rating: downgraded to Ba3 from Ba1; junior subordinated debt rating: downgraded to B2 from Ba3; the local currency deposit rating benefits from a moderate systemic support probability that results in a one-notch uplift from the Baseline Credit Assessment of B1; and the outlook is negative;

Nurbank's BFSR: unchanged at E+ (mapping to a Baseline Credit Assessment of B2), stable outlook; local and foreign currency deposit ratings: downgraded to B2 from B1; and the outlook is negative;

Tsesna Bank's BFSR: unchanged at E+ (mapping to a Baseline Credit Assessment of B3 from B1); local and foreign currency deposit ratings: downgraded to B3 from B1; and the outlook is negative;

Astana Finance's Baseline Credit Assessment: lowered to 17 from 14; local and foreign currency debt ratings: downgraded to B3 from Ba1; the local currency issuer rating benefits from a high systemic support probability that results in a one-notch uplift from the Baseline Credit Assessment of 17, eight notches lower than the local currency government bond rating for Kazakhstan; and the outlook is negative; and

Development Bank of Kazakhstan's Baseline Credit Assessment: unchanged in the range of 11-13; local and foreign currency issuer ratings: downgraded to Baa2 from Baa1; the local currency issuer rating benefits from a very high systemic support probability that results in a four-notch uplift from the Baseline Credit Assessment in the range of 11-13, one notch lower than the local currency government bond rating for Kazakhstan; and the outlook is negative.

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