S&P affirmed credit rating of VTB Bank (Kazakhstan) at BB+ level
The International Rating Agency Standard & Poor’s affirmed the
long-term rating of VTB Bank (Kazakhstan) at the level of BB+/Negative/B; kzAA-.
S&P analysts in their report named more stable and diversified sources of funding in comparison with other Kazakhstan medium-sized banks
and strong financial and operations support from the parent bank to be key factors that positively influence the level of the Bank’s ratings.
There are growing macroeconomic risks in Kazakhstan, small market share and limited competitive position of the Bank among the factors
that negatively influence the level of ratings. According to S&P, the negative outlook on the ratings of VTB Bank (Kazakhstan) reflects the outlook on ratings of parent VTB Bank OJSC. S&P reports, “We suppose that VTB Bank (Kazakhstan) will remain to be “strategically very important” subsidiary of VTB Bank and will be provided with operations, management and financial support from the parent bank almost in all predictable circumstances.”
S&P assesses business position of VTB Bank (Kazakhstan) as “moderate”, “moderate” indexes of capitalization and profitability, “moderate” risk position, “average” indexes of funding and “adequate” indexes of liquidity as defined in the Agency’s criteria.
The Agency reports, “VTB Bank (Kazakhstan) has a stable and experienced management team. Our fears related to ability of the top-management to control rapidly growing business of the Bank are decreased by opportunity of the Bank to use the best practices of the parent group in the field of information technologies, risks management and development of new products.”
For reference:
VTB Bank (Kazakhstan) JSC SO is 100% subsidiary Bank of the largest Russian VTB Bank OJSC.
The License of the National Bank of the RK No 1.2.14/39 dated 06.10.2014.
The Bank was assigned the international rating at BB+/Negative outlook by the Standard & Poor’s Agency.
VTB Bank and its subsidiaries form the international financial group keeping its activities at Russian and foreign markets.
VTB Group consists of more than 30 banks and financial companies in 20 countries of the CIS, Europe, Asia and Africa. The major shareholders of VTB is the Government of the Russian Federation (60,9%).