S&P confirms GAMMA rating of Development Bank of Kazakhstan at GAMMA-5+, withdraws it due to halt of ratings in GAMMA format

August 5. KASE

S&P confirms GAMMA rating of Development Bank of Kazakhstan at GAMMA-5+, withdraws it due to halt of ratings in GAMMA formatGovernance Services Standard & Poor’s announced the confirmation of the rating, “Analysis and evaluation of the effectiveness of corporate governance, accountability and management”, assigned to the JSC “Development Bank of Kazakhstan” (DBK) at the level of “GAMMA 5+” and its subsequent withdrawal, reported August 5 S & P.

Grading of rating assessment GAMMA is from 1 to 10, with 1 – minimum 10 – maximum rating value.

As indicated, the rating had been withdrawn at the initiative of Standard & Poor’s in connection with the decision to stop providing services to evaluate corporate governance on the methodology of GAMMA. However, Standard & Poor’s will continue to evaluate corporate governance in credit analysis.

“The Board of Directors of DBK is the most important advantage in the corporate governance of the bank. Since 2010, the Board of Directors consists of four experienced independent directors in addition to the three high-ranking representatives of the Government and the National Welfare Fund “SK”, – said analyst of Rating Service of Management of Standard & Poor’s Shvyrkov Oleg, whose words are reported.

“However, the Board of Directors received an independent majority, most recently, and its ability to influence the decisions of the fund, “Samruk Kazyna” and the government, especially in contentious situations, is not yet verified”, – concluded Mr. Shvyrkov.

Rating GAMMA, assigned to the DBK – the result of four component analysis, with gradations of marks from 1 to 10:

– Shareholder influence – 5

– Shareholder Rights – 5

– Transparency, audit and risk management – 5 +

– Board effectiveness, strategic process and incentives – 5 +

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