OREANDA-NEWS. On April 14, 2009 Fitch Ratings has downgraded Kazakhstan-based Alliance Bank JSC's (Alliance) Long-term Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'CCC', thereby resolving the Watch Negative (RWN) on the rating, reported the press-centre of KASE.

The downgrade follows Alliance's recent announcement that it has defaulted on one of its outstanding obligations, and that it has commenced discussions with its creditors on a three-month standstill in order to enable the bank to develop a restructuring and recapitalisation plan. A full list of rating actions is provided at the end of this announcement.

RD' ratings indicate that an issuer has experienced an uncured payment default on a material financial obligation but has otherwise not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedures. The bank's IDRs will remain on 'RD' until Alliance has completed the planned restructuring of its outstanding debt and, in Fitch's opinion, is able to comply with new terms negotiated with its creditors.

Rating actions are as follows:
Long-term foreign currency IDR downgraded to 'RD' from 'CCC'; removed from RWN

Short-term foreign currency IDR downgraded to 'RD' from 'C'; removed from RWN

Individual rating affirmed at 'F'

Support rating affirmed at '5'

Support Rating Floor affirmed at 'No Floor'

Senior unsecured debt downgraded to Long-term 'C' from 'CCC'; removed

from RWN; Recovery Rating 'RR4'

Senior unsecured debt affirmed at Short-term 'C';

Senior unsecured debt issued in Russia downgraded to 'C(rus)' from 'B-(B minus)(rus)'; RWN removed.