OREANDA-NEWS. May 31, 2010. Fitch Ratings has assigned ATF Bank's KZT13bn notes Series 1, KZT13bn Series 2 and KZT4.5bn Series 4 subordinated bonds Long-term local currency  BBB-' and National Long-term 'AA+(kaz)'.The bank is rated Long-term local currency Issuer Default 'BBB' and National Long-term 'AAA(kaz)', both with Stable Outlook, reported the press-centre of KASE.

The Series 1 and Series 2 floating interest subordinated bonds mature in May 2012 and February 2014, respectively. The interest rate for both issues is set annually based on the annual inflation rate and two percentage points premium with an 11% cap. Interest is paid semi-annually. ATF can repay the bonds early at par value should its Board of Directors opt to do so. The Series 4 8.5% subordinated bonds mature in November 2014 and interest is paid semi-annually.

The one-notch difference between the Long-term ratings of the subordinated bonds and ATF's senior debt reflects the former bonds' lower recovery prospects for investors.

ATF was the 5th-largest bank in Kazakhstan, with around 8.8% of system assets, at end-March 2010. It is primarily a corporate bank with 140 outlets located throughout Kazakhstan. ATF is ultimately owned by UniCredit S.p.A. (UC, rated'A'/Negative/'F1').

Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 29 December 2009, and 'Rating Hybrid Securities, dated 29 December 2009', are available at www.fitchratings.com.