BAKU, Azerbaijan, Oct. 29
By Nargiz Sadikhova - Trend:
S&P Global Ratings revised its outlook on Kazakhstan subsidiary Alfa-Bank JSC to positive from stable, and affirmed its 'BB-/B' long- and short-term issuer credit ratings, Trend reports with reference to the agency.
The agency also affirmed the 'kzA' national scale ratings.
“We continue considering SB Alfa-Bank a strategically important subsidiary to Alfa banking group. We think that it will continue benefiting from a sound liquidity cushion, well-established managerial, operational, and risk-management links with the group, and potential extraordinary financial support from the group. This all mitigates risks stemming from unfavorable market distortions in Kazakhstan's banking sector,” the report said.
According to the report, the ratings on SB Alfa-Bank reflects agency’s 'b+' anchor for banks operating predominantly in Kazakhstan, as well as its business position.
“In our view, the bank benefits from operational, managerial, and product development support from its immediate parent, Alfa-Bank JSC, as well as the strong Alfa-Bank brand name,” the report said.
The agency views positively the bank's good underwriting standards compared with the system average, knowledge transfer from its parent, and the low share of the loan book in total assets and notes the dilution effect of rapid growth. S&P assesses the bank's funding as average and liquidity as adequate.
“The positive outlook reflects a possible upgrade of SB Alfa-Bank in the next 12-18 months,” the report said.
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