Fitch rates Tsesnabank eurobond B-

Fitch Ratings said it assigned Tsesna International BV upcoming debut eurobond an expected long-term B- rating and an expected recovery rating of RR4. JSC Tsesnabank, rated issuer default B-, short-term B, individual D/E and support 5, will unconditionally and irrevocably guarantee payment of all amounts of the notes. The final rating is contingent upon receipt of final documentation conforming materially to information already received.

The notes are to rank at least equally with the claims of other unsecured creditors of Tsesnabank save those preferred by relevant legislation. Under Kazakhstani law, the claims of retail depositors and account holders rank above those of other senior unsecured creditors, the agency said.

The terms and conditions of the notes also contain a cross-default clause and a negative-pledge clause, the latter of which allows for a degree of securitization by Tsesnabank, Fitch said. Should any securitization be undertaken, Fitch said the nature and extent of any overcollateralization would be assessed by the agency for any potential impact on unsecured creditors.

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