Fitch Ratings Affirms DBK at 'BBB' with a Stable Outlook

The international rating agency Fitch Ratings has affirmed the long-term rating of the Development Bank of Kazakhstan JSC (a subsidiary of Baiterek National Management Holding JSC) at BBB, with a stable outlook.

The agency noted that DBK's long-term IDRs and GSR ratings are equated to the sovereign IDR rating of Kazakhstan (BBB/Stable). According to the agency's analysts, the high likelihood of state support reflects the important role of DBK in politics as a leading development institution in Kazakhstan, aimed at promoting the development of non-primary sectors of the national economy and reducing its dependence on the oil and gas industry. Analysts noted that the role of DBK is reinforced by a special legal status, since the financial institution is regulated directly by the state through the parent company of the Development Bank of Kazakhstan, the Baiterek holding.

Also according to the agency, long-term bilateral loans from foreign banks and Eurobonds issued on the international capital market accounted for 55% of funding at the end of Q3. 2021 Government-assisted borrowing accounted for 43%. The Bank noted that in order to maintain large volumes of financing in various sectors of the Kazakhstani economy, a good funding base is needed and the Development Bank of Kazakhstan continues to successfully attract investments from alternative sources not only in domestic but also in external capital markets, actively reducing the share of public funds in the funding structure .

To date, DBK is the only Kazakhstani issuer that has already successfully issued Eurobonds in tenge four times. The volume of funding raised by the Bank in 2021 amounted to 413 billion tenge, of which 97.6% are market funds and 2.4% from public funds.

- Confirmation of the high rating of the Development Bank by the largest international rating agency in the current realities proves that the Development Bank is a reliable issuer and an experienced partner. The Bank continues to head towards openness and transparency, steadily strengthening its financial stability and improving the quality of services provided to our clients, - emphasized Ruslan Iskakov, Chairman of the Board of the Development Bank of Kazakhstan.

Read more at www.fitchratings.com/research/banks/fitch-affirms-development-bank-of-kazakhstan-outlook-stable-01-0...