Fitch confirms rating of Sberbank and VTB Bank Kazakhstan at BBB-.

By bne IntelliNews January 25, 2013
Fitch affirmed Sberbank Kazakhstan's long-term foreign currency Issuer Default Ratings (IDRs) at BBB-. The outlook on Sberbank is stable. The outlook on VTB Bank Kazakhstan was revised to stable from negative. Short-term foreign currency ratings were affirmed at F3. Long-term local currency ratings were affirmed at BBB- with stable outlook. Fitch reasoned that the ratings are based on the high probability of support from the banks' respective owners: Sberbank of Russia and Bank VTB. The one-notch differential between the parents' IDRs and the respective subsidiary banks reflects the cross-border ownership, the limited importance of the subsidiaries due to their still small size relative to the parents, the significant operation independence of the Kazakh subsidiaries and that the non-Russian operations of the 2 groups have yet to demonstrate their strong commercial viability. Sberbank Kazakhstan is the 6th largest bank while VTB Kazakhstan is the 20th largest bank in the country.
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