“Moody’s upgrades Altyn Bank JSC’s (Bank) global scale deposit ratings to Ba1 from Ba2 and its national scale rating to Aa3.kz from A2.kz.
In its press release Moody’s noted a high probability of affiliate support from the majority shareholder China CITIC Bank Corporation Limited (CITIC Bank; Baa2 positive, ba2), as CITIC Bank completed the acquisition of a controlling stake in the Bank with the Bank’s logo now featuring CITIC Bank name.
“Moody’s upgrade is a reasoned step reflecting the Altyn Bank’s historically high standing in the financial market of Kazakhstan,” said Marat ALMENOV, CEO of Altyn Bank. “Our high credit ratings, sufficient liquidity, customer-oriented approach, flexibility and efficient decision-making combined with the reputation of respectable shareholders China CITIC Bank Corporation Ltd., China Shuangwei Investment Co Ltd. and Halyk Savings Bank of Kazakhstan JSC contribute to the strengthening of Altyn Bank’s position and mobilization of available resources, thus helping to achieve ambitious goals and reach new heights. We are now beginning to implement the new strategy of the Bank focusing on maintaining asset quality, introduction of advanced technologies and improvement of customer service.”
Moody’s analysts also stressed the strong financial profile of the Bank, as the Bank’s baseline credit assessment (BCA) was affirmed at ba2. According to Moody’s, this reflects the Bank’s highly resilient financial profile, low leverage, low-risk and highly liquid asset profile and substantial profitability metrics.
The adjusted BCA and long-term deposit ratings of the Bank are currently one notch above CITIC Bank’s BCA, which is a constrain factor for the further upgrade of these ratings. At the same time, the Bank’s baseline credit assessment could be uplifted in case of successful diversification of the Bank’s funding base and revenue structure amid the growing share of retail lending and increasing business relations with Chinese customers without compromising the high asset quality and strong financial profile.
Altyn Bank JSC (subsidiary of China CITIC Bank Corporation Ltd), previously subsidiary of HSBC Bank Kazakhstan, has been operating on the financial market of Kazakhstan for more than 20 years. Serving both corporate and retail customers, Altyn Bank JSC is the 14th biggest bank by asset size and has the highest ratings (Fitch – “BBB-”, Moody’s – “Ba1”) among commercial banks in Kazakhstan. Altyn Bank JSC was the first in Kazakhstan to launch a full-fledged digital bank Altyn-i offering a complete range of financial services to individuals. The bank has 4 branches in Almaty, Astana, Atyrau and Aktau and 2 additional offices in Almaty.
Moody’s Investors Service is an international credit rating, research and risk analysis firm. Moody’s is one of the “big three” international rating agencies.
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АО «Altyn Bank» (ДБ China CITIC Bank Corporation Limited)
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