BTA Bank -- Moody's: Outlook on the Kazakhstan banking system remains negative

London, 03 April 2014 -- The outlook for the Kazakhstan banking system remains negative, says Moody's Investors Service in a new report published today. The outlook reflects Moody's expectation of the need for higher loan-loss provisions to address the large overhang of problem loans; these risks are reinforced by the recent 19% devaluation in the tenge against the US dollar and the banks' ongoing rapid expansion into the consumer lending segment. The outlook also takes into account weak capital adequacy and profitability, coupled with Moody's assessment of a very low probability of systemic support for wholesale bank creditors. Nonetheless, Moody's also recognises that -- notwithstanding the recent devaluation -- the macroeconomic environment in Kazakhstan is relatively stable.

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