OREANDA-NEWS. October 11, 2007. Standard & Poor's Rating Services has assigned its “B+” long and “B” short-term counterparty credit ratings to Alliance Bank. The outlook is stable.

“The assigned credit ratings on Alliance reflect high credit risks in its unseasoned and rapidly built-up loan portfolio, substantial dependence on confidence-sensitive wholesale funding and young franchise which is vulnerable to above-average economic and industry risks in Kazakhstan”, said Standard & Poor's credit analyst Ekaterina Trofimova.

“Supportive rating factors are the Bank’s adequate risk management, supportive shareholders, improved profitability, competent management team, and strong commercial dynamism – in particular in retail and small and midsize enterprise banking”, Ms. Trofimova said.

 “The stable outlook balances the current market pressures with Alliance’s adequate commercial and financial management, which should protect its credit standing and fundamentals,” stressed Ms.Trofimova.

“Alliance Bank deems it important that Standard & Poor’s, highly reputable rating agency, have assigned ratings to us”, Chairman of the Management Board of Alliance Bank Mr. Dauren Kereibayev said. “We believe that being a public company and a backbone bank in Kazakhstan banking system Alliance Bank should have ratings from three leading rating agencies - Fitch, Moody’s and Standard & Poor’s. I think this may be a good sign for our investors as well”, he added.

“Any potential upgrade of the ratings in the near future will depend on market stabilization as well as a longer track record for the bank of sustained good commercial, financial, and credit performance” noted in S&P. Besides the current ratings incorporate a possibility of some weakening in the bank’s liquidity, asset quality, and capital position.

Alliance Bank is the backbone commercial bank of Kazakhstan banking system with leading positions in the retail lending market (approximately 20% in retail loans including more than 50% in express consumer loans originated in the country). Apart from recently assigned ratings from Standard & Poor's, JSC Alliance Bank has the following ratings assigned by the international rating agencies: Moody's Investors Service: long-term foreign currency rating is "Ва2" (“stable”), short-term foreign currency rating is "NP" and financial strength rating is “E+” (outlook is stable); Fitch Ratings: long-term rating is “BB-”, short-term rating is “B”, individual is “D” and supporting rating is “4”. Outlook for long-term rating is stable.