S&P revised Kazakh Bank RBK Outlook to Negative

S&P revised Kazakh Bank RBK Outlook to Negative

Baku, Azerbaijan, Feb. 28
By Elena Kosolapova – Trend:
The International Rating Agency S&P Global Ratings revised its outlook on Kazakhstan-based Bank RBK JSC to negative from stable, the rating agency said in a message.

'B-/C' long- and short-term counterparty credit ratings on the bank were affirmed.
The rating agency also lowered its long-term Kazakhstan national scale rating on Bank RBK JSC to 'kzB+' from 'kzBB-'.

“The outlook revision and lowering of the national scale rating reflect our concerns that a material reduction in RBK's liquid assets to the levels only slightly above the regulatory minimum as of Feb. 17 2017, exposes the bank to liquidity pressures or risk of breaching regulatory standards in a case of unplanned fund outflows,” S&P said.

According to the rating agency, the bank's regulatory coefficient of current liquidity (a liquidity measure with a three-month horizon) was only 0.305x as of Feb. 17, 2017, versus the minimum of 0.300x. Similarly, its liquid assets (cash, cash equivalents, short-term interbank placements, and unledged securities) reduced to 7.7 percent of total assets as of Feb. 17, 2017, from 15 percent as of Dec. 31, 2016.

S&P believes that RBK's current slim liquidity buffer, being subject to volatility, exposes the bank to risks associated with unplanned fund outflows, which cannot be excluded in Kazakhstan's challenging operating environment.
The rating agency affirmed its global scale ratings based on its base-case assumption that RBK will continue to meet its moderate planned repayments over the next few months fully and on time. S&P bases this expectation on RBK's planned attraction of new deposits and/or potential shareholder (the bank's owner already injected Kazakhstani tenge 9.9 billion [about $31 million] into the bank's capital in February 2017) or regulator support.

The negative outlook on RBK reflects the view of its weak capitalization and volatile liquidity buffer amid the challenging operating environment in Kazakhstan, which might impair the bank's creditworthiness over the next 12 months.

S&P could lower the long-term global scale rating on the bank in the next 12 months if RBK is unable to restore and sustain the share of liquid assets above 10 percent of total assets by mid-2017. That might happen if the bank is not able to attract planned funding, fund outflows continue, or it does not receive liquidity support from the owners or the regulator. The rating agency could also lower the rating if the bank does not comply with regulatory liquidity ratios. Substantial deterioration of RBK's loss absorption capacity, with the expected risk-adjusted capital (RAC) ratio falling below 3 percent, could also prompt a negative rating action.

S&P could revise the outlook to stable over the next 12 months if RBK's liquidity cushion rebounds to levels comparable with that of peers and if the agency believes that those improvements are sustainable. An upgrade is also possible, if RBK restores and sustains its RAC ratio above 5 percent in the next 12 months, while its asset quality does not deteriorate beyond the system average levels.

Follow the author on Twitter: @E_Kosolapova

Kazakhstan's Astana Hub to attract more accelerators before end of 2020
Kazakhstan's Astana Hub to attract more accelerators before end of 2020
Most popular mobile brands in Azerbaijan revealed
Most popular mobile brands in Azerbaijan revealed
Mobile internet usage increases in Georgia
Mobile internet usage increases in Georgia
Loading Bars
IMF head urges pandemic response that tackles climate crisis
Huawei: U.S. sanctions have no immediate impact on UK 5G supplies
Azerbaijan’s Azerenergy implementing reactive power compensation project
Gazelle Fund LP continues to invest in Georgian SMEs with high growth potential
Spanish Ibertest intereted in expanding co-op with Turkmenistan
Baku textile factory increases production volumes of women's clothing
Official talks COVID-19 possibly affecting Kazakhstan's Tengiz field operations
Israel central bank's Abir says buying corporate bonds to prevent layoffs
Prevent infection by means of “e-Tabib”!
Volume of five-month cargo transshipment via Turkey's Cesme port disclosed
Iran's Shazand Oil Refining Company opens tender to buy various equipment
Iran announces number of enterprises launched in West Azerbaijan Province
Azerbaijan getting closer to achieving goals of Fourth Industrial Revolution
Turkmenistan’s oil output to rise in 2020, says EIA
Georgian citizens returning from EU to undergo mandatory quarantine
Enrollees choosing UNEC will be able to get two diplomas in 4 years
Day record takes Romania's coronavirus cases over 30,000
Turkey announces volume of cargo transshipment from Georgia via its ports
Turkmenistan supports OSCE recommendations on national minorities affairs
Iran discloses value of exports via Arvand Free Trade Zone
Georgia eyes producing Kombucha natural drink
Iran's COVID-19 deathtoll surpasses 12,000
Kazakhstan to apply innovative technology in Karaganda's coal industry
Teams participating in EuroCups allowed to train in Azerbaijani districts upon certain rules
Uzbekistan renews WTO accession negotiations after long-year suspension
Kazakhstan working to resume flights on more int'l routes
Iran reveals info on manufactured equipment spare parts for oil, gas sector
German exports to fall by 15% in 2020
Tesla China sold 14,954 Model 3 vehicles in June, up 35% on the month
Georgia to open its borders to 5 countries
Georgians allowed to enter Montenegro without restrictions
Kazakh coal extracting venture to buy spare parts for equipment via tender
Kazakhstan's export to Israel down twofold
Iran's decision to ban mobile phone imports affects local market
Nokia shares fall on concerns over potential loss of Verizon business
Capacity of Chabahar Port in Iran increases
Thailand expects to delay plans for 'travel bubble' on virus worries
Azerbaijani president makes phone call to UN secretary-general
Prices on Azerbaijani oil increase
Price of gold grows in Azerbaijan on July 8
UAE significantly raises import of Kazakh-made goods
Amount of funds trading at NIMA exchange rate in Iran announced
Amazon India's unit gets $308 million in fresh funds from parent
Iran discloses volume of investments in ports of Mazandaran Province
Azerbaijani currency rates for July 8
Uzbek public procurement winners to be obliged to name their owners, beneficiaries
EIA: Kazakhstan's actual oil output volume exceeds forecast
Iran reveals number of metal products’ manufacturing volume
Global oil demand to exceed supply in second half of 2020
Georgia detects 5 new cases of COVID-19
Kazakh coal extracting venture to buy pipes via tender
OPEC’s output may drop to lowest level since November 1991
French economy seen rebounding 19% in third quarter, 3% in fourth quarter
Armenia violates ceasefire with Azerbaijan 78 times
ADY Container: Azerbaijan sees growth in rail freight transportation
Oil edges lower as U.S. inventory build stokes supply fears
EIA lowers forecasts for Azerbaijan’s oil output
Death toll from NLC India boiler blast rises to 13
Iranian currency rates for July 8
Volume of Baku's trade turnover drops
Azerbaijan talks perspectives of renewable energy projects in private sector
Japan minister again says no need for new emergency for coronavirus
UNESCO ready to develop tourism cooperation with Iran
52 migrants allowed to disembark in Malta
EIB’s involvement in Azerbaijan focused on social and economic infrastructure
Georgia sees decrease in unemployment rate in 1Q2020
Number of COVID-19 recoveries rises in Kazakhstan
Turkey's export of steel to China spikes
Colombia coronavirus lockdown extended until Aug. 1
PMs of Italy, Portugal call for "ambition to attack the crisis"
EU predicts "deeper recession" in 2020 than expected
Zimbabwean president fires health minister over corruption scandal
600 new COVID-19 infections recorded in Qatar
Possibility of airborne transmission of COVID-19 cannot be ruled out: WHO expert
Global COVID-19 deaths surpass 540,000: Johns Hopkins University
Fed policymakers see economy plateauing, risks ahead
WHO acknowledges 'evidence emerging' of airborne spread of COVID-19
U.S. withdrawal from WHO to take effect July 2021
Tehran, China vow to braden mutual cooperation
AZAL to increase the number of flights operated between Baku and Istanbul to 4 times per week
AZAL opens sale for special Baku-London-Baku flights
Azerbaijan’s Shaki winery to produce new types of wine
Azerbaijani Khazar Inshaat talks construction of housing estates in Sumgayit city
Azerbaijan’s Brot Baku company postpones opening of its store
Actual beneficiaries of agricultural subsidies be determined in Azerbaijan by late 2020
Fitch Ratings forecasts global fiscal deficit
Turkmenistan, Bahrain discuss cooperation development in energy sector
Azerbaijan reports 537 new COVID-19 cases
Details on cargo transshipment from Belgium via Turkish ports disclosed
Oil product prices start growing in Georgia
Numerous business projects to get support in Kazakhstan's Karaganda region
Turkmengas State Concern to buy electrical products via tender
Volume of five-month cargo transshipment through Turkish Samsun port disclosed
Details on cargo transshipment from Oman via ports of Turkey revealed
Russian Copper Company to start underground mine operation in Kazakhstan
Azerbaijani MP talks growth of areas where economic reforms vigorously implemented
Eurasia Drilling Company's operations in Caspian to continue to under-perform
Gas tariff to remain unchanged in Georgia for three years
Turkmenistan sets deadline for submitting tax returns
Bank of Georgia takes new initiative to develop wine sector
All news