VTB Bank Kazakhstan ratings affirmed at 'BB/B' on continued group support

VTB Bank Kazakhstan ratings affirmed at 'BB/B' on continued group support

Baku, Azerbaijan, Nov. 1
By Elena Kosolapova – Trend:
The International Rating Agency S&P Global Ratings affirmed 'BB/B' long- and short-term counterparty credit ratings on VTB Bank (Kazakhstan), the agency reported. The outlook remains stable.

At the same time, S&P affirmed its 'kzA' long-term Kazakhstan national scale rating on VTB Bank (Kazakhstan).
“The affirmation reflects our view that VTB Bank (Kazakhstan) remains a highly strategic subsidiary of VTB Bank JSC and will continue receiving operational, managerial, and financial support from its parent under almost all foreseeable circumstances,” S&P said.

This unchanged assessment of VTB Bank (Kazakhstan)'s group status acknowledges that the bank's performance deteriorated over the last year in terms of asset quality and bottom line result. However, S&P expects the bank will manage its asset quality in accordance with the recovery plan, gradually reduce the level of nonperforming loans under local standards to 10 percent by end-2017 from 16.4 percent currently, and stabilize its business model in the medium term to bolster its preprovision profitability. S&P also sees VTB Bank as supportive of this turnaround plan and highly likely to remain committed to this market.

S&P believes that VTB Bank (Kazakhstan) is well integrated within VTB Group, and the current assessment of the subsidiary's creditworthiness stems from both ongoing as well as extraordinary parental support, which the agency expect the group would provide to the bank in the event of stress.

The stable outlook on VTB Bank (Kazakhstan) mirrors that on the bank's parent VTB Bank. Rating actions on VTB Bank (Kazakhstan) would likely follow rating actions on VTB Bank. S&P’s assessment of group support remains the major rating driver for VTB Bank (Kazakhstan) over the next 12 months.

S&P would lower its ratings on VTB Bank (Kazakhstan) if it downgraded VTB Bank. Even if the agency revised the group status of the subsidiary to strategically important or its assessment of its SACP, neither action would, by itself, lead to a negative rating action on VTB Bank (Kazakhstan). However, if S&P perceives a weakening in the subsidiary's SACP, this could also lead it to reconsider its group status--for example, if the agency anticipates a weakening in the parent’s long-term commitment to the Kazakhstan market and this subsidiary in particular. For example, S&P could revise the SACP downward if the agency observed a marked deterioration of its capital metrics, with RAC falling below 5 percent.

A positive rating action on VTB Bank (Kazakhstan) is unlikely over the next 12 months. However, if S&P was to take a positive rating action on the parent, which is remote in its view, it would likely take a similar rating action on VTB Bank (Kazakhstan), as long as it continues to consider it a highly strategic subsidiary.

Iran reveals COVID-19 data for April 17
Iran reveals COVID-19 data for April 17
Iran reveals COVID-19 data for April 15
Iran reveals COVID-19 data for April 15
Iran reveals COVID-19 data for April 14
Iran reveals COVID-19 data for April 14
Loading Bars
Global COVID-19 deaths surpass 3 mln - Johns Hopkins University
Geostat reveals volume of Russian exports to Georgia
Solar panel station put into operation in Iran’s Razavi Khorasan Province
New auction to be held for Azerbaijani Finance Ministry's mid-term bonds
Georgia increases import of vehicles from Turkey
Kyrgyzstan imposes restrictive measures at airports
Bahar Azadi gold coin price rebounds in Iran
Foreigners to pass simplified visa procedures for 2021 F1 Azerbaijan Grand Prix
Serbian FM to visit Tehran today
Azerbaijan discloses number of COVID-19 vaccinated citizens
Azerbaijan confirms 2,148 more COVID-19 cases, 2,287 recoveries
Armenia falsified Caucasian Albania temples in Azerbaijan - rep of religious community
Iran to send trade attaché to Azerbaijan
Weekly review of major events in Azerbaijan's oil & gas sector
Azerbaijan shares footage from Jabrayil's Dash Veysalli village (VIDEO)
Armenia strived to create history for itself in Azerbaijan's lands - Head of Albanian-Udi community
Iran reveals COVID-19 data for April 17
Volume of loaded and unloaded cargo in Iran’s Charak port climbs
Azerbaijani oil prices on rise
VICE News report on Armenia's attack on Azerbaijani Barda nominated for award
Weekly review of main events in ICT sector of Azerbaijan
Earnings from fuel savings in Iran paid to investors
Uzbekistan's CCI, Portuguese Industrial Association establish co-op
Buy/sell operations at Iran Mercantile Exchange soar
Rosatom, Uzbekistan working on contract for building nuclear power plant
Turkmenistan to create electronic exchange database
IMF calls on Georgia to reduce capital expenditures in case of lockdown
Russia reports a new high of 9,321 coronavirus cases since March 20
Azerbaijan's Albanian-Udi Christian community members visit ancient temple in Tugh - Trend TV (PHOTO)
OSCE MG should force Armenia to follow terms of trilateral statement - Azerbaijan's Parliament
Weekly review of Azerbaijani currency market
Azerbaijan, Turkic Council discuss creation of joint digital tools
Weekly review of Azerbaijani precious metals market
EU rep should follow int'l law before meeting with separatist in Karabakh - expert
Potential areas of Turkmenistan’s interaction within Visegrad Group+Central Asia framework identified
Georgia reports 1,219 new coronavirus cases for April 17
Georgia holds auction for privatization of state property
Azerbaijani MP talks about spring session of IPA CIS held in Russia's St. Petersburg
Georgia continues to conduct research on Namakhvani HPP
Iran unveils details exports from Maragheh County
Kazakhstan reveals total number of TEU containers shipped along Aktau-Baku feeder line
There have always been good grape varieties in Pirshaghi – white and black Shani - President Aliyev
Participants of Azercell Student Bursary and Internship Programs share their success stories
Iran boosts aluminum ingots production
Azerbaijani police find mortar shells, detonators left by Armenia in Gubadly (VIDEO)
Iran declares amount of loans issued to SMEs
Kazakhstan's revenues from road cargo transportation down
Concept of ensuring security of Afghan section of TAPI signed
Members of Albanian-Udi Christian religious community of Azerbaijan visit liberated Khojavand (PHOTO)
Australia to continue review of COVID vaccinations - health minister
Italian media outlets highlight speech of Azerbaijani president at int'l conference in Baku
Kazakhstan decreases import of Ukraine-made goods y-o-y
Kazakh national atomic company's subsidiary opens tender to buy compressors
Azerbaijan sets up structure to work on urban planning in liberated lands
Kazakhstan's oil & gas company opens tender to develop consolidated time standards
Meeting of EU special rep with so-called "FM of Karabakh" promotes separatism, says Azerbaijani expert
Iranian currency rates for April 17
Iran to increase vaccinations as fourth wave of COVID-19 rises
Iran reaches target uranium enrichment
Oil demand to keep on rising in May, June 2021
Work on provision of electricity to Azerbaijan's liberated Sugovushan nearing completion
Bulgaria sees Georgia as valuable partner
Significant number of Georgian citizens register for employment program in Israel
Kazakhstan’s COVID-19 caseload up by 2,822
Ukraine receives first batch of Pfizer vaccine under COVAX initiative
IMF corrects estimate on Iran's foreign exchange bank reserves
Azerbaijan attracting foreign investments for renewable energy projects
Uzbekistan to open an embassy in Sweden
Global COVID-19 infection rate approaching highest: WHO
Portugal resumes flights to Brazil, Britain
Turkey reports over 63,000 daily COVID-19 cases
EU eyes to provide grants to Georgian non-profit organizations
Israel reports 41 new COVID-19 cases, 836,740 in total
Biden signs order keeping Trump-era refugee cap at 15,000
EU-UK trade plunges after Brexit: Eurostat
UK records another 2,596 coronavirus cases, 34 deaths
UN Security Council approves ceasefire monitors for Libya
North Macedonia vaccinates some 35,000 citizens
Raul Castro resigning from Cuba’s Communist Party
Azerbaijani IT company working on creating new network, server infrastructures
Georgian Economy Ministry to form expert council on Namakhvani HPP
Relations between Russia, Azerbaijan attain degree of strategic alliance - Federation Council Chair of Russian Federal Assembly
Turkish engineers develop fiber that kills coronavirus in minutes
Uzbekistan’s gold and foreign exchange reserves drop to $32.6 billion
Iran’s petrochemical output to reach $40b: Oil Minister
Relations within CIS IA to make comprehensive partnership ties more profound among member states - Chair of Azerbaijani Parliament (PHOTO)
Azerbaijani gymnasts win set of awards at Trampoline Hopes Cup tournament
Russia to permanently ban entry for eight US officials
Liabilities of Azerbaijan's Kapital Bank increase in 1Q2021
Azerbaijan's Kapital Bank completes 1Q2021 with profit
Azerbaijan’s production of oil and gas condensate down
Big share of Azerbaijan's GDP in Q1 2021 accounts for industrial sector
Azerbaijan announces date of next coupon payments on SOCAR bonds
Uzbekistan, Kyrgyzstan increase trade turnover
Azerbaijani insurance company to increase volume of payouts
Georgia, Turkey have significant prospects for co-op in agriculture, forestry
Georgian 'Mambo Frost' company exports its products to Azerbaijan
Fighter aircraft crashes in Kazakhstan
Russia adds 8,995 COVID-19 cases
Head of EU Delegation to Azerbaijan summoned to Azerbaijani MFA
All news