BAKU, Azerbaijan, April 3. Fitch Ratings affirmed the long-term foreign- and local-currency issuer default ratings (IDRs) of Kazakhstan-based Halyk Bank at 'BBB-' with Stable outlooks, Trend reports, citing Fitch.
Additionally, the bank's Viability Rating (VR) has been affirmed at 'bbb-'.
“The viability rating is underpinned by the bank's dominant market shares in Kazakhstan's banking sector and a record of robust profitability, as well as strong capitalization and liquidity,” the statement said.
Fitch noted that the resilience and robustness of the Kazakh banking sector give valid grounds to suggest that the bank will be able to overcome external shocks.
Another factor that underpins the rating is the dominant market share of Halyk Bank, which exceeds 30 percent of sector assets at end-2022. The agency added that this translates into a strong domestic franchise, particularly in corporate lending.
Fitch revealed that impaired loans of the bank reduced to 7.5 percent by the end of 2022 from 7.5 percent a year earlier.
The agency stated that Halyk's IDRs could be downgraded in case of a significant deterioration of the operating environment for Kazakh banks. The ratings could also be downgraded following a downgrade of Kazakhstan's sovereign rating, which now stands at BBB with a Stable outlook.
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.