Fitch ups BTA Bank

Fitch Ratings said it has upgraded BTA Bank's long-term issuer default ratings to B- from CCC and maintained them on rating watch positive.

The agency has also affirmed Kazkommertsbank's long-term issuer default ratings at B with a stable outlook.

The upgrade of BTA’s long-term issuer default ratings to B- from CCC reflects Fitch's opinion of the moderately improved support prospects for BTA as a result of Kazkommertsbank's acquisition of a 46.5% stake in the bank's ordinary share capital in July 2014 from the National Welfare Fund Samruk Kazyna and its receipt from Samruk Kazyna of a further 4.5% of BTA’s shares under a trust management agreement, the agency said.

In Fitch's view, Kazkommertsbank is likely to have a high propensity to support BTA, if needed, given plans to integrate the two banks and its expectation that BTA will be consolidated in Kazkommertsbank's IFRS accounts and qualify as a material subsidiary under the cross-default clauses in its eurobonds.

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