ASTANA< Kazakhstan, January 26. Fitch Ratings has affirmed Kazakhstan-based AB Bank of China Kazakhstan's (BOCK) JSC Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB+' with a stable outlook, Trend reports.
BOCK's Long-Term IDRs are driven by potential support from Bank of China Limited (BOC; A/Stable/bbb), its parent bank, as reflected in BOCK's 'bbb+' Shareholder Support Rating (SSR). In turn, BOC's IDRs are driven by a very high likelihood of support from the government of China (A+/Stable). Fitch believes that the state support available to BOC would likely be extended to BOCK.
Fitch's assessment of support from BOC is based on its full ownership and high levels of management and operational integration between the parent and the subsidiary. It also captures significant reputational risks for BOC in the event of a BOCK default, as well as the likely low cost of support given the subsidiary's limited size relative to the parent's.
In addition, Fitch has not assigned BOCK a Viability Rating, as the bank is a deeply integrated BOC subsidiary with a limited standalone commercial franchise. BOCK is heavily reliant on the parent for business origination and risk management. BOC's management controls all strategic decision-making at the subsidiary level.
