Research Update: Kazkommertsbank Outlook Revised To Negative On Likely Prolonged Period Of Weak Asset Quality; 'B+/B' Ratings Affirmed Jul 12
- Language: English
- Published: July 2012
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The ratings on Kazakhstan-based Kazkommertsbank (JSC) (KKB) reflect the high-risk economic and banking environment in the Republic of Kazakhstan (foreign currency BBB/Stable/A-3, local currency BBB+/Stable/A-2), increased pressure on the bank's asset quality, high dependence on foreign debt, limited capitalization, and high, albeit gradually declining, single-name concentrations in corporate loans and deposits. On the other hand, KKB has a good market position, particularly among large Kazakh corporate clients, and adequate core revenue generation, supported by aggressive cost management. In addition, the bank's cautious and fairly efficient business and operational adjustments and deleveraging are helping it adapt to the tough operating environment. KKB is one of the largest banks in Kazakhstan, with total assets of Kazakhstani tenge (KZT) 2.7 trillion (about $18.2...
Companies mentioned in this report are: Kazkommertsbank (JSC)
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