Fitch Affirms and Withdraws Eurasian Bank (Kazakhstan) Ratings
December 6. KASE
Fitch Ratings has affirmed and withdrawn the ratings of Kazakhstan-based Eurasian Bank (EBK). A summary of the rating actions is presented at the end of this commentary.
Fitch has withdrawn the ratings as EBK has chosen to stop participating in the rating process. Therefore Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for EBK.
EBK’s ratings reflect the risks stemming from related-party lending, high single-name concentration on both sides of the balance sheet and exposure to the real estate sector. At the same time, they consider the bank’s strong short-term liquidity position.
EBK is a medium-size financial institution with USD2.2bn of total assets, ranking seventh among Kazakhstan’s banks at end-9M10. The bank has a network of 18 branches and 48 outlets. EBK is part of Eurasian Financial Company, which is ultimately controlled by three individuals. The current owners also have substantial interests in the natural resources, real estate, and energy sectors, held via Eurasian Industrial Company and Eurasian Natural Resources Company.
The rating actions are as follows:
Long-term foreign currency IDR affirmed at ‘B-‘ with Stable Outlook; withdrawn
Short-term foreign currency IDR affirmed at ‘B’; withdrawn
Individual Rating affirmed at ‘D/E’; withdrawn
Support Rating affirmed at ‘5’; withdrawn
Support Rating Floor: ‘NF’; withdrawn.