S&P lowers Kazakh KazInvestBank on license revocation
Baku, Azerbaijan, Dec. 28
By Elena Kosolapova – Trend:
The International Rating Agency S&P Global Ratings lowered its long- and short-term counterparty credit ratings on Kazakhstan-based KazInvestBank to 'D/D' from 'B-/C', S&P reported Dec. 29. The agency also lowered its Kazakhstan national scale rating on the bank to 'D' from 'kzB+'.
At the same time, S&P lowered its ratings on KazInvestBank's rated senior unsecured and subordinated bonds to 'D' from 'B-' and 'CCC' respectively.
The rating actions follow the National Bank of Kazakhstan's (NBK's) revocation of KazInvestBank's banking license on Dec. 27, 2016. According to S&P, the regulator's action means that KazInvestBank is currently unable to fulfill its obligations to its counterparties according to the terms of the respective agreements.
KazInvestBank had faced an acute liquidity shortage in December 2016, caused by deposit and interbank funding withdrawals as well as limited funding sources for the bank in the market, which led to a failure to meet its financial liabilities starting from Dec. 22, 2016. KazInvestBank's official request to the regulator for the provision of short-term liquidity was refused.