Standard & Poor's raises ratings on Kazakh Nurbank to 'kzBB+'
Azerbaijan, Baku, Jan. 23 / Trend J. Nasibova /
Standard & Poor's Ratings Services today raised its long- and short-term counterparty credit ratings on Kazakhstan-based financial institution, Nurbank, to 'B/B' from 'B-/C' and its Kazakhstan national scale rating to 'kzBB+' from 'kzBB-'. The outlook is stable, Standard & Poor's said today.
"The upgrade reflects our view that Nurbank's capital position has strengthened following the November 2012 sale of Kazakhstani tenge (KZT) 47.3 billion of problem loans to third-party collection companies in a true sale without recourse," the statement said. "We view this transaction--the aggregated profit and loss impact of which was marginal--as similar to a capital increase."
The stable outlook reflects our expectation that the bank will maintain strong capitalization in the next 24 months and that its profitability and asset quality will gradually recover as new business is generated.
Our ratings on Nurbank reflect our assessment of its 'bb-' anchor, the starting point in assigning an issuer credit rating, as well as its "moderate" business position, "strong" capital and earnings, "weak" risk position, "average" funding and "adequate" liquidity, as our criteria define these terms.