JSC Halyk Bank (HSBK)
JSC Halyk Bank: Fitch Ratings has revised the Outlook on Halyk Bank to
Stable from Negative, the Long-Term Issuer Default Ratings (IDRs) have been
affirmed at 'BB+'
24-Nov-2020 / 10:30 CET/CEST
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On November 23, 2020, Fitch Ratings has revised the Outlook on Halyk Bank to
Stable from Negative, the Long-Term Issuer Default Ratings (IDRs) have been
affirmed at 'BB+'.
The affirmation of the ratings and the revision of the Outlook on Halyk Bank
reflects Fitch's expectations that the Bank's strong pre-impairment
profitability and substantial capital buffers would be sufficient to
mitigate the ongoing pressure on the asset quality, stemming from the
economic recession, lower oil prices, and negative implications from the
spread of COVID-19 on the broader economy. In Fitch's view, the ratings of
Halyk Bank could tolerate even a more severe increase in loan impairment
charges, than Fitch currently anticipate.
Fitch believes that some aspects of Halyk Bank's credit profile are
consistent with a one-notch higher rating (in particular, Halyk Bank's
company profile and some of the financial metrics). Fitch' base-case
expectation is that Halyk Bank may be upgraded by one notch if the economic
environment stabilizes, and its asset quality, earnings and capitalisation
do not substantially deteriorate in a current economic downturn.
Halyk Bank's bb+ viability rating (VR) is the highest in Kazakhstan,
reflecting its dominant market shares, high pricing power, substantial
capital and liquidity buffers, and a track record of superior stability of
its asset quality and performance through the credit cycle compared to the
sector averages.
About Halyk Bank
Halyk Bank is Kazakhstan's leading financial services group, operating
across a variety of segments, including retail, SME & corporate banking,
insurance, leasing, brokerage and asset management. Halyk Bank has been
listed on the Kazakhstan Stock Exchange since 1998, on the London Stock
Exchange since 2006 and Astana International Exchange since October 2019.
With total assets of KZT 9,999.1bn as at 30 September 2020, Halyk Bank is
Kazakhstan's leading lender. The Bank has the largest customer base and
broadest branch network in Kazakhstan, with 613 branches and outlets across
the country. The Bank operates in Georgia, Kyrgyzstan, Russia, Tajikistan
and Uzbekistan.
For more information on Halyk Bank, please visit https://www.halykbank.com
- ENDS-
For further information, please contact:
Halyk Bank
Mira Kassenova +7 727 259 04 30
MiraK@halykbank.kz
Margulan Tanirtayev +7 727 259 04 53
Margulant@halykbank.kz
Nurgul Mukhadi +7 727 330 16 77
NyrgylMy@halykbank.kz
ISIN: US46627J3023
Category Code: MSCM
TIDM: HSBK
Sequence No.: 88411
EQS News ID: 1150165
End of Announcement EQS News Service
(END) Dow Jones Newswires
November 24, 2020 04:30 ET (09:30 GMT)