S&P Downgrades Rating Of Kazakhstan-based Delta Bank
S&P Global Ratings has lowered its long- and short-term counterparty credit ratings on Kazakhstan-based Delta Bank JSC to ‘D/D’ (default) from ‘CC/C’, reports KazWorld.info with reference to the official website of Finance Standard & Poor’s Global Ratings.
“On Feb. 16, 2017, S&P Global Ratings lowered its long- and short-term
counterparty credit ratings on Delta Bank JSC to ‘D/D’ (default) from ‘CC/C’.
We also lowered our ratings on the bank’s senior unsecured bonds to ‘D’ from
At the same time, we lowered our Kazakhstan national scale ratings on Delta
Bank to ‘D’ from ‘kzCC’.
The rating action follows Delta Bank’s nonpayment of the full principal amount
of Kazakhstan tenge (KZT) 9.8 billion on its domestic senior unsecured bond,
following the end of the grace period on Feb. 14, 2017. The bank also says
that it has not paid some term deposits that were at maturity.
We consider that these nonpayments are a general default.
The bank is still awaiting support from the National Bank of Kazakhstan (NBK),
which is dependent on a liquidity injection from Delta’s majority shareholder Nurlan Tleubayev, which had been previously agreed with the NBK. We will
review the ratings on Delta Bank in case of liquidity support from the
shareholder or the NBK, provided that Delta Bank repays the abovementioned