Moody's lifts Development Bank of Kazakhstan notes

Moody's Investors Service said it has upgraded to Baa2 from Baa3 the rating for Development Bank of Kazakhstan's (DBK) $400 million European medium-term note program as well as for senior unsecured notes issued by the bank under this program following the introduction of the GRI methodology for non-depositary financial institutions in the EMEA region.

The outlook is positive.

The debt affected encompasses the first three drawdowns under the program in the amount of $100 million each, with the first tranche issued by the bank in October 2002 at a coupon rate of 7.125% per annum with a five-year maturity, the second tranche issued in November 2003 at 7.375% annual coupon and a ten-year maturity and the third tranche issued in June 2005 with a coupon of 6.5% per annum and a 15-year maturity, Moody's said.

The rating of DBK's senior unsecured debt has pierced Kazakhstan's Baa3 sovereign ceiling for bonds, which currently constrains the bank's long-term issuer rating as determined under the new methodology, the agency noted.

The level of the rating reflects the important role the bank plays as the sole development bank in the country, with the principal mission of supporting non-mineral resources sectors of the Kazakhstani economy, Moody's added.

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