Fitch rates Housing Construction Savings Bank of Kazakhstan at 'BBB+'; Outlook Stable

Date: 12:24, 26-11-2014.

Almaty. November 26. KazTAG -Fitch Ratings has assigned Housing Construction and Savings Bank of Kazakhstan (HCSBK) a Long-term local currency Issuer Default Rating (IDR) of 'BBB+' with a Stable Outlook, reports the rating agency.
The agency's view is based on (i) HCSBK's 100% ultimate sovereign ownership; (ii) its important social policy role, and the limited scope of its non-policy operations; and (iii) the state's recent funding and equity injections to support HCSBK's expansion.
The 'BBB+' rating also considers the currently limited cost of support that might be required by HCSBK given the bank's small size and sound standalone financial profile.
Fitch has not assigned a Viability Rating given the bank's limited non-policy role. Fitch has not assigned foreign currency IDRs given the bank's absence of operations in foreign currencies.
HCSBK was established in 2003 with the objective of developing a house savings and mortgages system in Kazakhstan. At end-1H14, Fitch estimates that HCSBK's share of the country's mortgage lending was around 22%.

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