OREANDA-NEWS. June 17, 2009. Fitch Ratings has affirmed Kazakhstan-based Tsesnabank's (TSB) ratings, including its Long-term Issuer Default Rating (IDR) of 'CCC' with a Negative Outlook. Fitch has simultaneously withdrawn TSB's ratings and will no longer provide rating or analytical coverage of the bank. A full list of rating actions is provided at the end of this commentary, reported the press-centre of KASE.

TSB's ratings and Outlook reflect the ongoing deterioration of its asset quality metrics, poor performance ratios, insufficient reserve coverage, a weak capital position and the worsening operating environment in Kazakhstan. The ratings also reflect Fitch's opinion that asset quality problems will likely further erode capital.

TSB, Kazakhstan's twelfth-largest bank, is headquartered in Astana and had a market share of 1% of assets as of end-April 2009. TSB is controlled by Tsesna Corporation, and at end-2008 the corporation held 93,38% of the bank.

The rating actions are as follows:

Long-term IDR: affirmed at 'CCC'; Outlook Negative; rating withdrawn

Short-term IDR: affirmed at 'C'; rating withdrawn

Individual Rating: affirmed at 'E'; rating withdrawn

Support Rating: affirmed at '5'; rating withdrawn

Support Rating Floor: affirmed at 'No Floor'; rating withdrawn

Senior Unsecured Debt: affirmed at 'CCC'; Recovery Rating 'RR4'; ratings withdrawn.