BAKU, Azerbaijan, September 7. Moody’s Ratings has affirmed Kazakhstan's Agrarian Credit Corporation JSC’s (ACC) long- and short-term local and foreign currency issuer ratings at Baa2/Prime-2.
This was announced in a report published by Moody’s Ratings.
According to Moody’s, the issuer outlook remains stable. Moody’s also affirmed ACC’s long-term national scale issuer rating at Aa3.kz. ACC is 100% owned by Baiterek National Investment Holding JSC (Baiterek, Baa1 stable), a government-owned development institution.
"ACC's Baa2 issuer rating incorporates a five-notch uplift from its b1 standalone assessment, reflecting our view of a very high likelihood of affiliate support from its parent, Baiterek, which is 100% owned by the Government of Kazakhstan," Moody’s said.
The agency reported that the rating affirmation reflects ACC’s public-policy role as a key state-controlled operating entity with a special mandate to channel financial support to Kazakhstan’s agricultural sector. This mandate and ownership structure enable ACC to benefit from extraordinary support if needed, while maintaining access to low-cost government funding and regular capital injections.
Furthermore, Moody’s noted that ACC’s standalone assessment benefits from high capital buffers, moderate leverage and good net interest margins, which support its earnings generation capacity. At the same time, the assessment reflects modest liquidity and high asset risks, including a weak-performing loan portfolio and low provisioning coverage.
Problem loans and leases accounted for 23% of ACC’s portfolio as of June 2026, reflecting its exposure to the cyclical agricultural sector and risks associated with its still-unseasoned investment portfolio. Moody’s expects problem loans to remain elevated at 20%-25% over the next 12-18 months.
ACC’s tangible common equity to tangible managed assets (TCE/TMA) ratio stood at around 20% as of June 2026. Moody’s expects capitalization to remain broadly stable, supported mainly by regular capital injections from Baiterek and internal earnings generation.
The agency said ACC’s profitability remains strong, supported by access to low-cost government funding and efficient operations, which help offset high credit costs. Net profit-to-average managed assets increased to 6% as of June 2026 from 4% in 2025, mainly due to a one-off reversal of loan loss provisions following a reassessment of collateral values.
ACC maintains limited unrestricted liquidity buffers, while refinancing risks are mitigated by ongoing parental funding matched to loan maturities.
"We expect a 'Very High' support from its parent, Baiterek. This leads to five notches of uplift from the company's standalone assessment of b1," Moody’s said.
The agency said its assumption of a "Very High" probability of support reflects ACC’s indirect 100% government ownership through Baiterek, its development mandate and importance to the government’s economic and social agenda, as well as a strong track record of support.
The Aa3.kz long-term national scale issuer rating continues to reflect ACC’s relative position within the national scale rating bands corresponding to its global scale ratings.
The stable outlook on ACC is in line with the stable outlook on Baiterek and Kazakhstan’s sovereign rating, and reflects Moody’s expectation that ACC’s standalone creditworthiness will not change significantly over the next 12-18 months.
According to Trend’s analysis, the affirmation comes amid a series of rating upgrades for Kazakhstan and major state-linked entities. On August 21, 2026, S&P Global Ratings raised Kazakhstan’s sovereign credit rating to BBB from BBB-, with a stable outlook. Following the sovereign upgrade, S&P also raised the ratings of several major Kazakh organizations, including KazMunayGas NC JSC (KMG), Tengizchevroil, Damu Entrepreneurship Development Fund and the Development Bank of Kazakhstan.
S&P raised KMG and Tengizchevroil long-term global scale ratings to BBB from BBB-. Damu’s long-term credit rating was also raised to BBB from BBB-, with a stable outlook, while the Development Bank of Kazakhstan’s long-term and short-term credit ratings were upgraded to BBB/A-2, with a stable outlook.
The series of rating upgrades points to a broader improvement in the assessment of Kazakhstan’s economic environment. S&P’s upgrade of the sovereign rating has been followed by higher ratings for major state-linked companies and financial institutions. It indicates that the stronger sovereign credit profile is also being reflected in the assessment of key borrowers in the Kazakh economy.
Against this backdrop, Moody’s affirmation of ACC’s Baa2 rating highlights the continued importance of the government support framework for state-linked financial institutions. For ACC, the strong likelihood of support from Baiterek remains a key factor underpinning its rating, while the company’s capital buffers and profitability provide additional support to its standalone credit profile.
