OREANDA-NEWS. On July 24, 2007 EXIMBANK KAZAKHSTAN JSC informed about ASSIGNment of the RATINGS B2/NP/E+ TO the bank by MOODY'S agency, reported the press-centre of KASE.

Eximbank Kazakhstan JSC (Alamty), whose securities are traded in the Kazakhstan Stock Exchange's (KASE) offical list under category "A", had spread the press-release in which the following is announced:

Begging of Citation

Moody's Investors Service today assigned the following global scale ratings to Eximbank Kazakhstan ("Eximbank"): B2 long-term and Not-Prime short-term foreign and local currency deposit ratings and an E+ bank financial strength rating ("BFSR"). All of the bank's ratings carry a stable outlook.

According to Moody's, Eximbank's E+ BFSR, which translates to a Baseline Credit Assessment of B2, is based on the bank's fundamental credit strength, which, in Moody's view, is underpinned by the bank's strong capitalization, but constrained by its weak franchise and significant concentrations on both the asset and liability side of the balance sheet.

The bank's B2 Local and Foreign Currency Deposit ratings do not factor in any systemic support in the event of a stress situation, based on the bank's very low national market share and relative importance to the country's banking system. Although support from the bank's shareholders cannot be ruled out, its extent and timeliness are somewhat uncertain. Consequently the long-term deposit ratings are at the same level as the bank's B2 Baseline Credit Assessment.

The bank's majority shareholder CAEC (68,9% of total shares at Q12007) is a holding company with investments in electricity generation and distribution, chemical production, transport and other areas. Eximbank's weak franchise is characterised by its very low market share and the geographical concentration of the bank's business in Kazakhstan. The bank has targeted SME and retail lending markets and is in the process of expanding its distribution network.

Eximbank's strong capitalization with Tier 1 ratio of 40% at YE2006 provides some cushion for the bank's rapid asset growth in the near term.

In Moody's view, Eximbank's ratings could be upgraded if it succeeds in materially reducing loan book concentration while reporting strong capital adequacy, and delivering a satisfactory operating performance.

The following ratings were assigned:

Eximbank Kazakhstan: BFSR at E+; local currency long-term deposit Rating at B2; foreign currency long-term deposit Rating at B2; local currency short-term deposit rating at Not Prime; foreign currency short-term deposit rating at Not Prime.

Based in Almaty, Kazakhstan, Eximbank reported total IFRS consolidated assets and net income of US$172 million and US$16,2 million, respectively, at YE2006 (US$76 million and US$9,9 million, respectively, one year previously).