BAKU, Azerbaijan, March 4. Fitch Ratings has assigned “Social-Entrepreneurial Corporation Almaty” (SEC) long-term foreign- and local-currency Issuer Default Ratings (IDRs) of 'BBB-' with Stable Outlook, Trend reports, citing Fitch.
Fitch notes that the rating issued to SEC is reflective of the link between the organization and the city of Almaty (BBB/Stable).
The credit rating agency assumes that SEC’s liabilities would be transferred to the city or another government body in the event of liquidation, due to the fact that Almaty city controls 100 percent of the shares. Consequently, the city financially supports all activities and programs carried out by the SEC.
Social-Entrepreneurial Corporation Almaty received 4 billion Kazakh tenge ($9.27 million) in 2022 and 3 billion Kazakh tenge ($6.95 million) for the implementation of the city’s food security program and stabilize prices of the social food products.
Additionally, the organization received 61.4 billion Kazakh tenge ($142.39 million) for the support of the housing renovation program, as well as 6.3 billion Kazakh tenge ($14.61 million) for the support of small and medium enterprises SMEs.
Based on the socio-political implication, Fitch considers the default by SEC Almaty would undermine the reputation of the local government. Consequently, the risks are considered to be minimal.
Fitch Ratings Inc. is an American credit rating agency and is one of the most reputable global rating agencies. The agency aims to provide business intelligence to facilitate the effectiveness of decision-making and decrease the business risks for its clients.