(The following statement was released by the rating agency)
MOSCOW, April 14 (Fitch) Fitch Ratings has assigned Bank
upcoming series 4 and series 5 senior unsecured local currency
bonds under the
second bond programme an expected long-term rating of 'B(EXP)'
and an expected
National long-term rating of 'BB+(kaz)(EXP)'. The issues'
Ratings are 'RR4(EXP)'. The bonds' details are as follows:
KZT10bn series 4 bonds with a maturity of three years and a 7.5%
KZT15bn series 5 bonds with a maturity of five years and an 8%
KEY RATING DRIVERS
The issues' ratings are aligned with BCC's Long-term local
Default Rating (IDR) of 'B' and National Long-term rating of
ratings reflect the significant deterioration of its asset
quality, its moderate
capitalisation, weak profitability and increased reliance on
National Bank of
Kazakhstan (NBK) funding following recent deposit outflows.
However, the ratings
are supported by the bank's reasonable coverage of currently
loans, fairly conservative management and a generally supportive
Any changes to BCC's Long-term local currency IDR would impact
ratings. Significant continued deterioration of asset quality
putting more acute
pressure on the bank's capitalisation could result in a
Upside potential for BCC's ratings is currently limited.
of asset quality trends and improvements in performance and
be credit-positive. BCC's ratings could be upgraded by several
notches if its
major shareholder, Korea's Kookmin Bank (KMB, A/Stable; 42%
a majority stake in the bank and affirms its strategic
commitment to BCC.
However, Fitch views this scenario as unlikely in the near term.
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Additional information is available at www.fitchratings.com.
Applicable criteria, 'Global Financial Institutions Rating
Criteria', dated 31
January 2014, 'Recovery Ratings for Financial Institutions',
dated 24 September
2013, 'National Scale Ratings Criteria ', dated 30 October 2013,
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Recovery Ratings for Financial Institutions
National Scale Ratings Criteria
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