S&P Global Ratings affirmed its ‘B-/C’ long- and short-term counterparty credit ratings on Capital Bank Kazakhstan JSC (CBK). The outlook is negative.
At the same time, S&P affirmed ‘kzB+’ Kazakh national scale rating on the bank.
“The affirmation follows an improvement in CBK’s liquidity metrics in the first half of February,” S&P said. “The bank’s liquid assets increased to 14 of total assets as of February 13, from 5.5% as of January 27, on the back of a long-term shareholder deposit alongside other net customer deposit inflows. This strengthened the bank’s capacity to deal with future unexpected customer funds outflows.”
“Under our base-case scenario, we project that the bank will meet its planned repayments by mid-2017 fully and on time without breaching the regulatory liquidity ratios,” the message said.
“We base this expectation on projected inflows of deposits, potential additional shareholder support, and available unused limits under the bank’s existing credit facilities,” S&P said.
“In addition, we negatively reassessed the bank’s capital and earnings to adequate from strong, based on our view that asset growth will most likely outpace the bank’s ability to generate stable profits over the next 12-18 months in the absence of expected capital injections from the owner,” the message said.
“We believe that CBK will still continue to have relatively high level of capitalization compared with the Kazakh banking system average,” S&P said. (Trend/Business World Magazine)