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
Strong franchise, particularly among large Kazakh corporates; Strong core revenues and tight cost control provide good profitability; and Good financial flexibility, which has lengthened funding tenures, while introducing rollover risk. Fast loan growth untested to external shocks; Operates in a high-risk economic and banking environment; and Weak core capital considering lending concentrations and fast loan growth. The ratings on Kazakhstan-based Kazkommertsbank (JSC) (KKB) reflect the rapid loan growth and significant concentrations in lending and funding in a high-risk economic and banking environment. Furthermore, fast loan growth has pressurized capitalization, which needs to be addressed soon. KKB has been using Kazakhstan's improved economic prospects to its advantage, attracting primary funds as well as international debt to fund its growing profitable lending...
Companies mentioned in this report are: Kazkommertsbank (JSC)
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Research Type: Full Analysis