Fitch assigns Kazakhstan Mortgage Company long-term foreign currency rating of 'BB'

Photo: Fitch assigns Kazakhstan Mortgage Company long-term foreign currency rating of 'BB' / Finance

Azerbaijan, Baku, July 16 / Trend A. Badalova /

Fitch Ratings has assigned Kazakhstan Mortgage Company (KMC) a long-term foreign currency rating of 'BB' and Long-term local currency rating of 'BB+', and a Short-term foreign currency rating of 'B', the agency reported on Monday.

The Outlooks for the Long-term ratings are Positive. The rating action also affected the outstanding bonds of the company.

According to the agency, KMC's ratings reflect the company's ownership by the government, its strategic importance in the area of social housing and hence potential government support. The Positive Outlooks reflect the sovereign rating and expected capital injection from the state.

The agency says KMC has a relatively long-term debt maturity profile spread out until 2027 with domestic bond repayment concentrated in 2012 to 2018.

It expects the company will receive KZT 107.8 billion of capital injections as part of an approved state programme 'Affordable housing 2020' over the period of 2013-2020. The government is also expected to provide explicit guarantees for KMC's domestic bonds in the amount of KZT 56.5 billion.

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