Fitch Ratings Alliance Finance Rouble Bond "BB-" and "A (rus)"
OREANDA-NEWS. On October 30, 2007 Fitch Ratings has assigned Alliance Finance's (AF) recent RUR3bn five-year bond issue due June 2012 a Long-term rating of 'BB-' (BB minus) and a National Long-Term Rating of 'A+(rus)', reported the press-centre of KASE.
"The ratings reflect the unconditional and irrevocable guarantee of the timely and full repayment of the issue from parent company Alliance Bank (Alliance)," says Alexei Kechko, associate director in Fitch's Banking group.
AF is a Russia-domiciled subsidiary of Kazakhstan-based Alliance, which has a Long-Term IDR of 'BB-' (BB minus) with a Stable Outlook, a Short- Term IDR of 'B', an Individual Rating of 'D', a Support Rating of ?' and a Support Floor of 'BB-' (BB minus).
Alliance's guarantee of the notes will rank at least equally with all the bank's present or future unsecured senior obligations, save those preferred by relevant provisions of law and of general application. Under Kazakhstani law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-H107 retail deposits accounted for 11% of Alliance's total liabilities, according to the bank's unaudited but reviewed IFRS accounts.
Alliance is controlled by Seimar Alliance Financial Corporation, which is in turn owned by three brothers. The bank has been growing very rapidly and was one of the four largest in Kazakhstan at 31 August 2007. Strategy is focused on retail lending and lending to SMEs.
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