ASTANA, Kazakhstan, December 14. Fitch Ratings has upgraded Kazakhstan's Altyn Bank (Subsidiary Bank of China CITIC Bank Corporation Limited)'s (Altyn) Long-Term Foreign-and Local-Currency Issuer Default Ratings (IDRs) to 'BBB' from 'BBB-' with a stable outlook, Trend reports.
Fitch has also upgraded the bank's National Long-Term Rating to 'AAA (kaz)' from 'AA+(kaz)'.
The rating action follows the upgrade of parent China CITIC Bank Corporation Limited's (CNCB) Long-Term IDRs to 'BBB+' from 'BBB'. The bank's 'bb' Viability Rating has been unaffected by this rating action.
Altyn's IDRs and National Rating are driven by Fitch's assessment of a high probability of support from CNCB, as reflected by the bank's 'bbb' Shareholder Support Rating (SSR).
This view reflects CNCB's majority ownership (50.1 percent), high reputational risks for CNCB in case of the subsidiary's default, and a low cost of potential support for the parent.
At end-3Q23, Altyn's share in CNCB's total assets was a low 0.2 percent.
In Fitch's view, the bank will remain a strategically important subsidiary for CNCB in the medium-to-long term, as the latter remains committed to developing a franchise in Kazakhstan.