MOSCOW (S&P Global Ratings) — S&P Global Ratings affirmed last week its “B-/B” long- and short-term issuer credit ratings on Kazakhstan-based Nurbank JSC. The outlook remains negative.

They also raised our national scale rating on Nurbank to kzBB- from kzB+, following the revision of their national scale mapping for Kazakhstan

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1. In the S&P’s view, the viability of Nurbank’s business model has been challenged by significant deposit outflows over the past 18 months, limited earnings capacity, and an adverse operating environment for small and midsize banks in Kazakhstan.
2. However, S&P consider that the pressure on the funding profile is balanced by the support the bank’s majority owner has already provided and by the potential for further support.
3. Therefore, S&P are affirming our B-/B long- and short-term issuer credit ratings on Nurbank.
4. Following publication of their revised national scale mapping tables, S&P are also raising their national scale rating on Nurbank to kzBB- from kzB+.
5. The negative outlook reflects the ongoing pressure on Nurbank’s funding profile and franchise as well as reliance on the continued support from the majority shareholder to maintain the bank’s credit standing over the next 12 months.