Moody's analysts drew attention to the fact that this rating action completes the downgrade review for DBK, which began on January 18, 2022.
According to the agency, the confirmation of DBK ratings reflects a decrease in uncertainty regarding the likelihood of external support for DBK from the Government of Kazakhstan through “Baiterek” NMH JSC. Moody's experts believe that the reduction in uncertainty is due to the transformational changes implemented by the development institute, in particular, personnel appointments in the company's top management, as well as the reorientation of credit policy.
In addition, the stable outlook on long-term ratings reflects Moody's expectations that a high level of capitalization, stable profitability and high liquidity will balance the risks of asset quality decline in the face of higher inflation and tighter financing conditions.
"Confirmation of the long-term ratings of the Development Bank of Kazakhstan and improvement of forecasts by an influential international rating agency in conditions of uncertainty and high volatility is recognition of the sustainability and effectiveness of the ongoing transformation policy of the Development Bank. Currently, DBK has taken a steady course to reform its activities, which will improve the transparency and customer orientation of its activities", - noted Chairman of the Management Board Ruslan Iskakov.
Earlier, the International Rating Agency Fitch Ratings confirmed the long-term rating of DBK at the level of "BBB" with a stable outlook.
Detailed information on Moody's expert assessment is available on the agency's website at the link: https://www.moodys.com/research/Moodys-confirms-the-ratings-of-11-financial-institutions-in-Kazakhstan--PR_464917
JSC "Development Bank of Kazakhstan" (DBK) - national development institute for the modernization and development of the non-resource and infrastructure sectors of the economy of Kazakhstan, established in 2001. Main activities: development of production infrastructure and manufacturing industry, promotion and attraction of external and internal investments into the country's economy. DBK is one of the largest investment operators of state programs for industrial and innovative development. DBK is part of the Baiterek National Managing Holding JSC.
Public Relations Service of Development Bank of Kazakhstan JSC: +7 (7172) 79 26 08 (www.kdb.kz, facebook.com/kdb.kz, Twitter@KDBkz)
