Fitch affirms ratings of Kazakh institutions
Baku, Azerbaijan, Apr. 5
By Rashid Shirinov – Trend:
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of Development Bank of Kazakhstan and House Construction Savings Bank of Kazakhstan at 'BBB-'. Fitch has also affirmed KazAgroFinance's Long-Term IDRs at 'BB+', Trend reports via a press release of Fitch Ratings.
The Outlooks on the Long-term IDRs of all three institutions are Stable. The affirmation of the Long-Term IDRs reflects Fitch's view of a high propensity of the Kazakh authorities to support the institutions.
Fitch Ratings noted that the ratings of all three policy institutions are sensitive to changes.
According to the rating agency, the ratings of Development Bank of Kazakhstan and House Construction Savings Bank of Kazakhstan could be upgraded if the banks become directly owned by the government and state officials become more directly involved in the oversight of the institutions. For Development Bank of Kazakhstan, upside may also emerge if the government replaces or guarantees most of its wholesale funding.
KazAgroFinance's ratings could be upgraded if the company becomes directly owned by the government or its policy role is significantly expanded.
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