Azerbaijan, Baku, Nov. 22 /Trend E.Kosolapova/
Fitch Ratings has upgraded Development Bank of Kazakhstan's (DBK) Long-term foreign currency Issuer Default Rating (IDR) to 'BBB' from 'BBB-', and its Long and Short-term local currency IDRs to 'BBB+' and 'F2' from 'BBB' and 'F3', respectively, the outlook is 'stable', the agency's report stated on Thursday.
The bank's short term foreign currency IDR is affirmed at 'F3', while long-term IDR is upgraded to 'BBB+' from 'BBB', the outlook is 'stable'.
Long-term local currency IDR is upgraded to 'BBB+' from 'BBB'.Short-term local currency IDR is upgraded to 'F2' from 'F3'.Support Rating is affirmed at '2'.Support Rating Floor is revised to 'BBB' from 'BBB-'.
Long-term senior unsecured programme and debt ratings upgraded to 'BBB' from 'BBB-'.
Short-term senior unsecured programme rating affirmed at 'F3'.
The rating actions follow Fitch's upgrade of Kazakhstan's Long-term foreign currency IDR to 'BBB+' from 'BBB' and Long-term local currency IDR to 'A-' from 'BBB+' on November 20, 2012, the report says.
According to Fitch report, the IDRs reflect a high probability that support would be forthcoming to the bank from the government of Kazakhstan, if needed.
This view is based on DBK's ultimate sovereign ownership, its important policy role as a development institution, the close association between the authorities and the bank, giving rise to significant reputational risk in case of a bank default, and the currently still moderate cost of any potential support relative to the sovereign's financial resources, the report says.
Kazakh Development Bank was established in 2001. Its main activities are the development of industrial infrastructure and manufacturing industry and assistance in attracting foreign and domestic investments in the economy. The bank is a subsidiary of Samryk Kazyna National Welfare Fund.