Moody’s has assigned first time E+/B1/NP ratings to Alfa Bank Kazakhstan, Moody’s informed. Moody’s assigned an E+ Financial Strength Rating, ratings B1/NP for long-term and short-term foreign currency deposits. All ratings have Stable outlook.

Alfa Bank Kazakhstan is a subsidiary of Russia's Alfa Bank. Moody’s suggested that the bank is unlikely to get any support from the Kazakh government in case of distress due to its small size and limited importance for the domestic economy. However, this is not the case with the parent bank, which will be able to support the small operations of its subsidiary and prefer to keep its good name and reputation, if there is any trouble.

Moody’s pointed at strong financial result, high quality of assets and good expansion opportunities of Alfa Bank Kazakhstan. It registered a net profit of US$2.5mn in 2002, or 2.7 times more y/y. The bank assets totalled US$ 42.88mn as of January 1, 2003, or hiking by 47.4% y/y, whereas liabilities amounted to US$45.37mn, or up by 55.5% y/y, mainly due to expanded accounts and deposits of the clients. The bank’s equity increased to US$12mn, or up by 23.4% y/y, as a result of retained earnings.

(IntelliNews 07.vii.03)