S&P Confirms Ratings of Kazinvestbank
OREANDA-NEWS. On January 29, 2007 Kazinvestbank JSC (Almaty), securities of which are traded in Kazakhstan stock exchange's (KASE) category "A" official list, had provided KASE with the press-release of next contention, reported the press-centre of KASE:
Standard & Poor's Ratings Services has affirmed KazInvestBanks's (KIB) short-term and long-term counterparty rating at 'B' and under Kazakhstan national scale at 'kzBB+'. The Outlook is Stable.
The ratings on KazInvestBank (KIB) are constrained by its small domestic franchise with a short track record of operations, rapid loan growth, and high concentrations on both sides of the balance sheet. Supportive rating factors are its niche strategy focused on profitability versus market share, transparent and supportive shareholders, its experienced management team, better risk-management practices compared with local peers, and improved profitability.
S&P believes that the stable outlook balances the current market pressures with KIB's good commercial and financial management (which should protect its credit fundamentals) and its limited reliance on foreign debt.
According to rating analysts, any potential rating upgrade will depend on market stabilization, as well as on a longer track record and maintenance of high capitalization levels and good asset quality. Conversely, deterioration in liquidity, capitalization, and asset quality could put downward pressure on the ratings on KIB.
With total assets US$481,6 million as of 2007 year end KIB is the 16th largest bank in Kazakhstan, providing banking services mostly to corporate customers. Based in Almaty, KIB reported substantial increase in profitability reaching US$7.7 million in net income for the year ending on December 31, 2007. Total assets amounted to US$198,3 million and net income US$0,92 million at the end of 2006. The bank expanded its distribution network to six branches and two outlets in major regional canters by the end 2007.
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