On March 7, 2023, the international rating agency S&P Global Ratings improved the outlook on the rating of Development Bank of Kazakhstan JSC (hereinafter – DBK, Bank) to stable. The ratings are affirmed at the level of "BBB", which corresponds to the sovereign rating of the Republic of Kazakhstan.
Thus, the long-term and short-term credit ratings of DBK issuer on foreign and national currency obligations remain at the level of "BBB–/A–3", the rating on the national scale is at the level of "kzAAA", and the rating of the issue of the priority unsecured bonds of the Bank is at the level of "BBB-".
The agency notes DBK is the core entity within National Managing Holding Baiterek JSC and assesses the Bank as a key structure within this holding.
«We align our assessment of Baiterek's group credit profile (GCP) with our local currency rating on Kazakhstan. The GCP is our opinion of a group's creditworthiness as if it were a single legal entity. We see an almost certain likelihood that Baiterek would receive timely and sufficient support from the government to meet its financial obligations if needed», S&P Global Ratings informs in a statement concerning the improvement of the forecast.
The agency also noted as of June 30, 2022, DBK represented 36% of the total assets of the Baiterek Holding. DBK’s manadate is to contribute to the development of Kazakhstan's economy through investments in priority non-energy sectors. This mandate closely aligns with Baiterek’s overall group strategy.
The stable outlook on DBK mirrors that on Kazakhstan. Any rating action on the sovereign would likely result in a similar action on the bank, the agency concluded.
It should be also noted at the end of February, Fitch Ratings agency confirmed the long-term default ratings of DBK issuer in foreign and national currencies at the level of "BBB" with stable outlook. Moody's also confirmed the Bank's ratings at the level of "Baa2" with stable outlook. All ratings correspond to the sovereign ratings of the Republic of Kazakhstan.