Friday November 28 2014
News Source: Global Exchanges
Focus: Credit Rating
Type: General
Country: Kazakhstan
Standard & Poor`s Ratings Services affirmed its foreign and local currency counterparty credit ratings on the state-owned Development Bank of Kazakhstan (DBK) at `BBB+/A-2`. The national scale rating is `kzAAA`. The outlook is negative.
The ratings on DBK reflect the classification of the bank as a government-related entity (GRE) and the assessment that there is an almost certain likelihood that the government of Kazakhstan would provide timely and extraordinary support to DBK if it ran into financial difficulties. In accordance with the criteria for rating GREs, the view of the likelihood of extraordinary government support is based on our view of:
- DBK`s integral link with the government, which indirectly owns 100% of DBK, and regular injections into the bank`s capital. In our view, the government`s management of its shares in DBK through National Management Holding Baiterek puts the government in a stronger position to define DBK`s strategy and align it with government socioeconomic policy priorities.
- DBK`s critical role as the government`s primary financial vehicle for implementing its industrialization agenda. DBK provides long-term credit to the non-extractive sectors of the economy, particularly the industrial and manufacturing sectors.
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