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Fitch confirms rating of Kazakh Agrarian Credit Corporation

Kazakhstan Materials 23 September 2023 09:21 (UTC +04:00)
Madina Usmanova
Madina Usmanova
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ASTANA, Kazakhsta, September 23. Fitch Ratings has affirmed Kazakhstan's JSC Agrarian Credit Corporation's (ACC) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at "BBB-" with a stable outlook, Trend reports.

As noted by the agency, the affirmation reflects Fitch's unchanged view of the company's strong links with the state due to its important role in the provision of affordable lending to national agricultural producers and in the consolidation of agricultural assets and functions.

Fitch noted that the state is ACC's ultimate owner via JSC National Management Holding Baiterek (Baiterek, BBB/Stable), which sets the framework for debt and dividend policy and appoints the board of directors. The latter approves management decisions and ACC's annual financial statements.

Moreover, the board of directors includes Baiterek representatives who aim to ensure ACC's operations follow the goals of state programs. ACC is also subject to direct control by relevant government bodies, such as ministries of finance, agriculture, labor, and social protection.

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