Baku, Azerbaijan, Sept. 13
By Ali Mustafayev – Trend:
Standard & Poor's (S&P) Ratings Services revised the outlook on Development Bank of Kazakhstan, affirming its rating at 'BB+/B'.
The decision followed the outlook on the Republic of Kazakhstan on 8 September 2017, which also resulted positively, stabling from negative and affirming the 'BBB-' foreign and local currency sovereign ratings.
“We revised our outlook on the Republic of Kazakhstan to stable from negative, reflecting our assessment that Kazakhstan's monetary policy flexibility has become less constrained following the sharp decline in resident deposit dollarization in the economy,” S&P said.
The rating agency also stated that the outlook on DBK mirrors the outlook on the sovereign ratings on Kazakhstan. Any rating action on the sovereign would likely result in a similar action on DBK.
“We view DBK as playing a core role within Kazakhstan's National Management Holding Baiterek group,” said the agency's message.
“Although we assess the likelihood of extraordinary government support to the consolidated Baiterek group as almost certain, we don't equalize the group credit profile (GCP), which reflects the creditworthiness of the consolidated operations group taking into account extraordinary government support, with the 'BBB-' sovereign credit ratings on Kazakhstan.
DBK's general mandate is considered to be a contribution to the development of Kazakhstan's economy through investments in priority sectors closely aligns with the Baiterek group's overall strategy.
Previously, Standard & Poor's (S&P) Ratings Services has lowered its long- and short-term issuer credit ratings on Development Bank of Kazakhstan (DBK) to 'BBB-/A-3' from 'BBB/A-2'.
The negative outlook on the long-term rating was announced by S&P on 25 February 2017.
Currently the DBK is expected to remain stable for the further 12 months, receiving support from the government.