BAKU, Azerbaijan, June 12. Fitch Ratings has recently issued ratings for Bereke Bank JSC in Kazakhstan, Trend reports.
The bank has been assigned a Long-Term Issuer Default Rating (IDR) of 'BB' and a Viability Rating (VR) of 'b'. Fitch Ratings has also assigned a Stable Outlook to the IDRs.
Bereke Bank JSC's Long-Term IDRs are influenced by potential support from Kazakh authorities, as indicated by its Government Support Rating (GSR) of 'bb'. The GSR is based on Bereke's state ownership through JSC National Management Holding Baiterek and the relatively low cost of potential support compared to Kazakhstan's available resources.
Meanwhile, Bereke's Viability Rating (VR) of 'b' reflects the bank's evolving business model, certain weaknesses in its performance and funding structure, and a negative adjustment for the business profile score, resulting in a VR one notch below the implied VR of 'b+'.
Bereke Bank JSC, operating within the concentrated Kazakh banking sector, holds a modest market position with a 3.6 percent share of sector assets as of the end of the first quarter of 2023.