Moody's rates Alliance Bank notes Ba3, Ba2

Moody's Investors Service said it assigned Ba2/Not Prime long-term and short-term foreign currency debt ratings to the senior debt to be issued by ALB Finance BV, a special purpose vehicle wholly owned by Alliance Bank (Kazakhstan), under its newly established medium-term note program, with an expected total amount of $1.5 billion.

The senior notes will be unconditionally and irrevocably guaranteed by Alliance Bank, the agency said, adding that long-term subordinated notes which may also be issued under the program have been rated Ba3.

Simultaneously, the agency said it has assigned a Ba2 long-term debt rating to the upcoming first drawdown of senior notes under the program.

The agency said the Ba3 long-term rating for the subordinated debt also reflects the extent of this instrument's subordination against various classes of debt and equity, adding that this rating accounts for a higher expected loss given default, stemming from the subordinated nature of this class of debt and was notched down from the bank's Ba2 senior unsecured debt rating.

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