Analysts at Moody’s Investors Service have affirmed B1 long term foreign currency deposit ratings and standalone E+ bank financial strength rating equivalent to a B1 standalone credit assessment on Eurasian Bank. The outlook on the ratings has been negative.
In a research note published yesterday, the analysts state that the affirmation of ratings indicates the progress that Eurasian Bank achieved over the past two years, mainly in improving profitability and asset quality metrics.
Moody’s maintains a negative outlook on Eurasian Bank’s ratings as a result of still weak capital adequacy and persistent pressure on the bank’s capital, which has stemmed from high credit risk concentration and asset growth, which has not been sufficiently offset by revenue generation.
The company has its headquarters in Almaty, Kazakhistan and reported under IFRS total assets of KZT 369 billion and shareholders’ equity of KZT 31.9 billion. The reported net profit has been KZT 6 billion, the analysts say.