Kazakhstan

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Moody's Issues Annual Report on Kazakhstan

 

03.07.2007 - Cbonds

 

Moody's Issues Annual Report on Kazakhstan

 

New York, July 03, 2007 -- In its annual report on Kazakhstan, Moody's

Investors Service says the country's Baa2 government bond rating and stable

outlook are supported by solid economic growth based on foreign direct

investment in the energy sector, increased pipeline export capacity, and a

tight fiscal and monetary policy.

 

Kazakhstan's A2 foreign currency country ceiling for bonds is based on its

foreign currency government bond rating of Baa2 and Moody's assessment of a

low risk of a payments moratorium should the government default.

 

"Kazakhstan's debt numbers are deceiving," said Moody's Vice President

Jonathan Schiffer, author of the report. "Much of the external debt consists

of intra-company loans to the energy sector and is therefore of less risk.

Also, much of this debt is private sector banking debt. The conclusion is

that little foreign exchange debt is actually government debt." Schiffer

added: "The government has little debt and little reason to borrow

significantly in the short-to-medium term. Any future borrowing would be

mainly in local currency."

 

He said the National Fund for excess oil earnings and tax revenues is

growing rapidly and would, if needed, reduce vulnerability to external

commodity price shocks.

 

"The economy grew strongly in 2006," said Schiffer. "At the same time

however, the current account deficit widened, along with a slowing of oil

prices/export growth, strong import growth, and a surge in profit

repatriation."

 

In addition, he added, there was a large growth in the gross external

debt/GDP ratio, reflecting heavy borrowing by second and third tier banks

abroad.

 

"The recent constitutional changes ensure political stability and

modernization after 2012, the end of the current president's third

term," said Schiffer. "The amendments are liberal, with more power given

to political parties and parliament, a shorter time frame and number of

terms of office of the presidency, tighter limitations on administration

of capital punishment, and greater juridical protection of various

individual rights."

 

http://www.cbonds.info/eng/news/index.phtml/params/id/373711

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quellenangabe fehlt, somit urheberrechtsverletzung - meldung ist erfolgt, löschung on the way...

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Fitch: Kazakhstani Banks Aggressive Growth

 

Auszug

 

The Long-term foreign currency IDRs of the six largest banks remain underpinned by the potential for sovereign support. Two of the countrys largest banks, Kazkommerts (KKB) and Halyk (both have Long-term foreign currency Issuer Defaut ratings (IDR) of BB+/Positive Outlook), have made public share offerings in Q406/Q107 to support ongoing growth, and Alliance Bank (Long-term foreign currency IDR BB-(BB minus)/Stable Outlook) plans to make an offering of existing shares. The tapping of public equity markets represents a further source of capital flexibility for Kazakhstani banks and is a credit positive. ATF Bank (Long-term foreign currency IDR BB- (BB minus)/Rating Watch Positive) is set to become the first major bank to be acquired by a foreign buyer, following the recent agreement with Italys Unicredito (IDR A+/Positive Outlook), and this may serve as a catalyst for other banks to be sold.

 

http://www.cbonds.info/eng/news/index.phtml/params/id/373957