ASTANA, Kazakhstan, November 7. International rating agency Moody's has upgraded Kazakh Jusan Bank's long-term deposit rating to Ba3, with positive outlooks, Trend reports.
At the same time, Moody's has upgraded the bank's ratings on the national rating scale - the long-term deposit rating was raised to Baa2.kz from Ba1.kz and the long-term counterparty risk rating (CRR) was raised to A3.kz from Baa2.kz.
The improvement of Jusan Bank's ratings, according to Moody's, indicates the bank's stronger financial position, which has increased asset quality, profitability, and solvency amid an improved operating environment in 2022 and 2023.
According to the rating agency, increasing income allowed the bank to generate additional reserves, which, together with work on problem loans and enhancing the quality of freshly issued loans, resulted in a fall in the loan portfolio's share of problem loans.
Moody's further adds that the change in Jusan Bank's shareholder was a positive factor because it raised the transparency of the ownership structure and decreased the risks of volatility in the client and deposit base.
The positive outlook on the long-term ratings reflects Moody's expectation that the bank's development strategy and reduced shareholder risk will lead to a stronger customer base and revenue growth, which will have a positive impact on asset quality and loss absorption capacity.
The rating could be upgraded if Moody's expectations that the bank can benefit from a more favorable operating environment are implemented.
