OREANDA-NEWS. November 22, 2007. Moody’s Investors Service affirmed its credit ratings on Tsesnabank: Bank Deposits – “B1 /NP”, Bank Financial Strength – “E+”, Stable outlook.

Moody’s Investors Service views positively on TSB financial strength rating affirmation as it is underpinned by the Bank’s strengthening country-wide franchise and its potential for further growth. The ratings affirmation reflects the diminished likelihood of upgrades under the current adverse international and domestic financial environment. However it is important to note that Tsesnabank appeared to be less vulnerable to the occurring liquidity crunch due to the factors that it is less dependent on foreign borrowings (the rate of foreign borrowings in total liabilities amounts to around 25%) and its exposures to construction sector are considerable low and amount to around 8%.

Furthermore the following main Tsesnabank’s credit strengths were marked:

• Expanding SME lending and retail lending contribute to funding and revenue
diversification;
• Reasonable quality of management;
• Proven ability to grow franchise;
• Good market position in the Kazakh Capital Astana with longstanding links with major
clients and visible presence in central and northern Kazakhstan.
Since 2005, TSB has placed emphasis on its strategic move to target medium-sized companies and has increased its focus on the SME and retail business lines.

TSB’s total assets grew by 156% in 2006 and 55% in 1H 2007 to reach KZT86 billion (US$678 million) and KZT134 billion (US$1 billion) respectively, making TSB the 11th largest bank in nKazakhstan with a 1.2% share of total banking system assets.

Moody’s Investors Service ratings can be upgraded provided that Tsesnabank proves its ability to effectively manage its strengthening franchise and growing market share, improving on profitability and liquidity management, risk management and corporate governance procedures.

Established in 1992, with branch network comprising 75 full-service branches and outlets throughout Kazakhstan, Tsesnabank is the only commercial bank headquartered in Astana, the capital of Kazakhstan. As of October 1st 2007 its total assets exceed $1 billion and total shareholders’ equity amounts to $124 million. Further to its devised strategy, the bank will continue to gain a larger market share by expanding its products range and enhancing the quality of services.