NUR-SULTAN

Moody’s raised the national scale long-term deposit rating of Kazakhstan-based Bank CenterCredit JSC to Ba1.kz from Ba2.kz.

The agency also upgraded the bank’s national scale long-term counterparty risk rating to Baa2.kz from Baa3.kz and affirmed its long- and short-term deposit ratings at B2/Not Prime. The outlook on the long-term deposit rating was revised to positive from stable.

Also affirmed were the bank’s “caa1” baseline and adjusted baseline credit assessments; B1(cr)/Not Prime(cr) long- and short-term counterparty risk assessments; and B1/Not Prime long- and short-term counterparty risk ratings.

Moody’s said the positive outlook reflects a recent improvement in the lender’s asset quality and pre-provision profitability, which the agency expects to continue over the next 12-18 months. The bank’s loss absorption capacity is also expected to improve over the period.

Bank CenterCredit is the 5th largest bank (out of 26) in Kazakhstan with total assets of $ 4.4 billion, equity of $ 313 million and market shares of 5.9 percent in total assets, 7.1 percent in customer loans and 5.5 percent in deposits as of late 2020. The bank offers a wide range of retail, corporate and MSME products via its distribution network of 19 branches and 117 outlets in 18 cities and rural settlements of Kazakhstan.

In August, Moody’s upgraded Kazakhstan’s local and foreign currency long-term issuer rating to Baa2 from Baa3 and changed the outlook to stable from positive. Concurrently, the foreign currency senior unsecured debt and MTN programme ratings have also been upgraded to Baa2 from Baa3 and (P)Baa2 from (P)Baa3, respectively.

The decision to upgrade the ratings was driven by Moody’s assessment that Kazakhstan’s sovereign balance sheet and credit profile demonstrates resilience that is consistent with peers at the Baa2 rating level.

“This resilience is underpinned by the size and effective use of the country’s sovereign wealth assets, which Moody’s expects will grow and continue to exceed the level of government debt for the foreseeable future, as well as the lengthening and ongoing track record of credible enhancements to the macroeconomic policy framework that promotes external stability,” the agency said in a report.