Moody’s placed on review for downgrade ATFBank (Kazakhstan) ratings

June 15. KASE

Moody's placed on review for downgrade ATFBank (Kazakhstan) ratingsMoody’s Investors Service has today placed on review for downgrade ATF Bank’s Ba2 long-term local and foreign-currency deposit ratings, Ba2 foreign-currency senior unsecured and B1 foreign-currency junior subordinated debt ratings. The bank’s E+ bank financial strength rating (BFSR) – which maps to B3 on the long-term rating scale is unaffected by this and continues to have a stable outlook.

RATINGS RATIONALE

The decision to review the bank’s ratings for possible downgrade is triggered by the review for possible downgrade of UniCredit’s ratings, initiated by Moody’s on 17 May 2011. Unicredit is ATF Bank’s ultimate parent. Moody’s currently incorporates high parental support probability in ATF Bank’s deposit and debt ratings, which results in four-notches of rating uplift from the bank’s standalone credit strength of B3. In the process of the review, the rating agency said that it will (i) consider the effect of a possible downgrade of UniCredit’s ratings on ATF Bank’s ratings; and (ii) consider whether the current high probability of parental support for ATF Bank remains appropriate.

Moody’s notes that the bank’s deposits and debt ratings may be downgraded if UniCredit’s ratings are downgraded. ATF Bank’s ratings are also likely to be downgraded if Moody’s revises downwards its assumption of high parental support. The rating agency said that it could lower the parental support probability for ATF Bank’s ratings if it considers that the subsidiary’s strategic importance may have diminished.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The principal methodologies used in this rating were “Bank Financial Strength Ratings: Global Methodology” published in February 2007, and “Incorporation of Joint-Default Analysis into Moody’s Bank Ratings: A Refined Methodology” published in March 2007.

Headquartered in Almaty, Kazakhstan, ATF Bank reported total assets of USD6.57 billion and total capital of USD239 million, in accordance with its audited IFRS financial statements at year-end 2010.

http://www.kase.kz/en

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