Fitch Has Affirmed Baiterek National Holding’s Ratings

On May 2, 2019, Fitch Ratings international rating agency has affirmed a long-term foreign and national currency rating at BBB, national long-term AAA (kaz) and short-term foreign currency F2 to “Baiterek” National Managing Holding” JSC. The outlook for long-term ratings is Stable.

Fitch also affirmed the senior unsecured domestic debt ratings of Baiterek Holding at BBB/AAA (kaz) levels.

In accordance with the rating methodology of companies associated with the state, Fitch considers Baiterek as having a strong relationship with Kazakhstan (BBB/Stable Outlook) and assesses the likelihood of government support for the company as high.

- Based on our assessment of the degree of communication and incentives to provide public support, the agency applies a top-down approach, which, regardless of the holding’s independent creditworthiness, determines Baiterek’s ratings at the same level as sovereign ratings, - it is said in the message of the rating agency.

Reference:

“Baiterek” National Managing Holding” JSC was established in accordance with the Decree of the President of the Republic of Kazakhstan dated May 22, 2013. The key institution of the Government of the Republic of Kazakhstan that complies with the advanced standards of corporate governance and ensures the implementation of the objectives for the sustainable development of the economy of Kazakhstan through its diversification, support for innovation, export development, increase in labor productivity. The Holding includes: Development Bank of Kazakhstan JSC, Investment Fund of Kazakhstan JSC, Zhilstroisberbank of Kazakhstan (HCSBK) JSC, Kazakhstan Mortgage Company MO JSC, KazakhExport EIC JSC, Damu EDF JSC, QazTech Ventures JSC, Housing Construction Guarantee Fund JSC, Kazyna Capital Management JSC, Baiterek Development JSC, Kazakhstan Project Preparation Fund LLP.

Fitch Ratings, along with Standard & Poor’s and Moody’s, is one of the “big three” international rating agencies. The main task is to provide the world credit markets with independent and prospective-oriented credit ratings, analytical studies and data.