Baku, Azerbaijan, Feb.17
By Leman Zeynalova – Trend:
S&P Global Ratings has lowered its long- and short-term counterparty credit ratings on Kazakhstan-based Delta Bank JSC to 'D/D' (default) from 'CC/C'.
“We also lowered our ratings on the bank's senior unsecured bonds to 'D' from 'CC',” said the message from S&P.
At the same time, the ratings agency has lowered its Kazakhstan national scale ratings on Delta Bank to 'D' from 'kzCC'.
“The rating action follows Delta Bank’s nonpayment of the full principal amount of Kazakhstan tenge (KZT) 9.8 billion on its domestic senior unsecured bond, following the end of the grace period on Feb. 14, 2017,” said the message. “The bank also said that it has not paid some term deposits that were at maturity.”
“We consider that these nonpayments are a general default,” said S&P.
The bank is still awaiting support from the National Bank of Kazakhstan (NBK), which is dependent on a liquidity injection from Delta’s majority shareholder Nurlan Tleubayev, which had been previously agreed with the NBK, according to the message.
“We will review the ratings on Delta Bank in case of liquidity support from the shareholder or the NBK, provided that Delta Bank repays the abovementioned bond,” said S&P.
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