The international rating agency S&P Global Ratings has revised the outlook on the credit ratings of Development Bank of Kazakhstan JSC (a subsidiary of Baiterek Holding; hereinafter – DBK, Bank) from Stable to Positive.
The outlook revision follows a similar action on the sovereign ratings of the Republic of Kazakhstan.
According to the Agency, the Positive outlook on DBK’s ratings mirrors the outlook on Kazakhstan’s long-term sovereign rating, underscoring the country’s solid financial fundamentals.
At the same time, the Bank’s long- and short-term issuer credit ratings in foreign and local currencies were affirmed at ‘BBB-/A-3’.
S&P Global Ratings noted that it views DBK as an instrument for implementing strategic state programmes. The Bank is the largest subsidiary of Baiterek Holding, and in the Agency’s view its creditworthiness is closely linked to that of the sovereign. DBK accounts for around one-third of Baiterek Holding’s consolidated assets. The Agency’s assessment of Baiterek’s group credit profile is aligned with the Republic of Kazakhstan’s sovereign local-currency rating (BBB-/Positive/A-3).
Improvement in the sovereign outlook supports the strengthening of macroeconomic and financial stability, enhances credit resilience, and is expected to have a positive effect on conditions for accessing international capital markets and on the volume of investment inflows into the national economy.
