Standard & Poor's assigns AsiaCreditBank JCS "kzBB+" on the national grade, leaving other ratings unchanged
11.10.11 16:27
/IRBIS, October 11, 2011/ - Ratings Services Standard & Poor's has
assigns national scale rating "kzBB +" to AsiaCredit Bank JCS,
announced October 10 Standard & Poor's.
As indicated, the long-term and short-term rating "B/B", assigned to
the bank earlier, and forecast changes in ratings "stable" remain
unchanged after assigning the rating on a national scale.
"The level of the national scale rating reflects our view that a small
percentage of the bank on Kazakhstani market, the high credit risk,
high portfolio concentration, low profitability and aggressive plans for
further growth. The positive impact on the ratings has temperate, in
our opinion, the capitalization of the bank (which improved as a result
of the recent capital increase), the lack of dependence on foreign
borrowing and a sufficient share of liquid assets", - the report says.
As noted, factors supporting the credit rating of the bank also include
confident recovery of Kazakhstan (rating on liabilities in foreign
currency BBB/Stabilnyy/A-3; rating for local currency: BBB+/
Stable/A-2; national scale rating: kzAAA) and stabilization in the
banking sector.
Forecast "Stable" reflects the view of S & P that the external
pressure on the financial profile and business profile of the bank is
reduced. In addition, S & P analysts expect the bank gradually
improve the quality of its loan portfolio while maintaining an adequate
level of base funding and liquidity management, as well as
maintaining appropriate capital ratios.
"If we come to the conclusion on further deterioration in the market
environment in Kazakhstan, we will review the outlook to "negative",
which can lead to a subsequent lowering of the ratings. However, we
believe such a development unlikely. Nevertheless AsiaCredit Bank
ratings could be lowered if the aggressive growth strategy of the
bank will not be supported adequately capitalized, high-quality
system of risk management and improved operational processes", -
was stated in the message.
According to analysts of S & P, ratings increase in the short term is
unlikely. This will require strengthening the bank's market position,
expanding its customer base, strong business diversification, further
improvement of risk management, maintaining adequate financial
performance is stable and improving asset quality.
[2011-10-11]