Moody’s assigns Ba2 to Kaspi Bank (Kazakhstan) on national scale

November 6. KASE

Moody's assigns Ba2 to Kaspi Bank (Kazakhstan) on national scaleMoody’s Investors Service has today assigned a National scale rating (NSR) to Kaspi Bank. The NSR carries no specific outlook.


According to Moody’s, Kaspi Bank’s NSR is derived from the bank’s B1 long-term global local currency deposit rating and reflects the relative standing of the bank’s creditworthiness within its domicile country – Kazakhstan.

The assignment of a NSR reflects Kaspi Bank’s established retail lending franchise in Kazakhstan (approximately 14% market share of retail loans, excluding mortgages, as at mid-2012), which, according to Moody’s, could strengthen further. The NSR also reflects the bank’s strong financial profile, including solid internal revenue generation capacity (return on average equity rose to 31% in the first three quarters of 2012, from 19% at year-end 2011 and 5% at year-end 2010), as well as adequate asset quality and capital cushion (as at end-September 2012, total capital adequacy ratios amounted to 19.7% according to the Basel I approach, and 15.9% under local regulatory standards).

At the same time, Moody’s notes that Kaspi Bank’s NSR is constrained by the relatively short-term record of its operations in the retail segment and high depositor concentration, albeit recently declining to current moderate levels: as at end-September 2012, funds of the 20 largest depositors accounted for 30% of total liabilities (YE2011: 36%), with the two largest creditors accounting for 16% (YE2011: 27%).


An upgrade of Kaspi Bank’s ratings will be contingent on the bank’s ability to further develop its franchise and improve capital adequacy in line with its strategy to grow its more risky retail business, whilst also maintaining adequate asset quality and further reducing borrower and depositor concentrations.

Any material adverse changes in Kaspi Bank’s risk profile – particularly any significant weakening of the bank’s liquidity position or deterioration of its asset quality together with an inability to maintain its capital base – would exert negative pressure on the bank’s ratings.


The principal methodology used in this rating was Moody’s Consolidated Global Bank Rating Methodology, published in June 2012, and Mapping Moody’s National Scale Ratings to Global Scale Ratings, published in August 2010. Please see the Credit Policy page on for a copy of this methodology.

Headquartered in Almaty, Kazakhstan, Kaspi Bank reported total audited IFRS assets of $2.9 billion and net income of $58 million as at YE2011.

Moody’s National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody’s global scale ratings in that they are not globally comparable with the full universe of Moody’s rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a “nn” country modifier signifying the relevant country, as in “.mx” for Mexico. For further information on Moody’s approach to national scale ratings, please refer to Moody’s Rating Methodology published in October 2012 entitled “Mapping Moody’s National Scale Ratings to Global Scale Ratings”.