BAKU, Azerbaijan, Apr. 22
By Nargiz Sadikhova - Trend:
S&P Global Ratings agency has withdrawn its ‘BB/B’ issuer credit ratings on Kazakhstan’s Agrarian Credit Corporation (KACC), Trend reports with reference to the S&P.
At the time of withdrawal of the ratings the outlook was stable. The agency has also withdrawn its 'kzA+' Kazakhstan national scale ratings and its issue ratings on all the company's debt.
“At the time of withdrawal, the ratings reflected our view that KACC remained a highly strategically important subsidiary of KazAgro Group, which essentially implements and oversees key government programs in the agricultural sector in Kazakhstan,” the report said.
The S&P noted that KACC's role within the group is to provide financing to the agricultural sector.
“KACC’s stand-alone credit profile stood at ‘b-’, reflecting high economic and industry risks in Kazakhstan, and the risks associated with the company’s narrow business model and relatively large amount of problem assets on the balance sheet,” the report said.
KACC’s main activity is organization of rural credit society network and their crediting; selling of mortgage property and agricultural products received in repayment of granted funds; consulting and information support of credit societies, crediting of infrastructure on procurement, processing, storage and selling of agricultural products
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