S&P rates HSBC Bank Kazakhstan BBB

Standard & Poor's said it assigned BBB long-term and A-3 short-term counterparty credit ratings to HSBC Bank Kazakhstan JSC, along with a kzAA+ Kazakh national scale rating.

The outlook is stable.

The ratings reflect the bank's strong brand name and group franchise, high integration and brand association with the HSBC group and substantial support from its strong and supportive parent, S&P said.

The ratings also consider the bank's strong underwriting standards and niche strategy that focuses on large blue-chip companies, which provides good asset quality and cheaper and more stable deposit funding compared with domestic peers, the agency said.

Offsetting factors are the high-risk economic and banking environment in the Republic of Kazakhstan and the bank's small absolute size.

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