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4 years ago
Fitch Rates SB JSC Home Credit and Finance Bank's Upcoming Debut Local Bonds 'BB-(EXP)'
August 29, 2013 / 1:57 PM / 4 years ago

Fitch Rates SB JSC Home Credit and Finance Bank's Upcoming Debut Local Bonds 'BB-(EXP)'

(The following statement was released by the rating agency) LONDON/MOSCOW, August 29 (Fitch) Fitch Ratings has assigned Kazakhstan-based SB JSC Home Credit and Finance Bank's (HCK) upcoming local bonds an expected Long-term rating of 'BB-(EXP)' and an expected National Long-term rating of 'BBB+(kaz)(EXP)'. The issue's total amount and final maturity are yet to be determined. KEY RATING DRIVERS The issue's Long-term rating and National long-term rating correspond to HCK's Long-term local currency Issuer Default Rating (IDR) of 'BB-' and National Rating of 'BBB+(kaz)'. HCK's Long-term IDRs, National Rating and Support Rating reflect the moderate probability of the bank receiving support if needed from its parent, Russia's Home Credit and Finance Bank (HCFB, 'BB/Stable; bb'). Fitch's view on the probability of support is based on the bank's full ownership by HCFB, its small size relative to the parent (HCK accounts for 5% of HCFB's assets, limiting the cost of any potential support) and reputational risk for HCFB in case of the bank's default. The one-notch difference between HCFB and HCK's ratings reflects the cross-border nature of the parent-subsidiary relationship, HCK's so far limited track record of operations and some uncertainty about the long-term commitment of HCFB to support HCK in case of a prolonged deterioration of the operating environment in Kazakhstan. RATING SENSITIVITIES An upgrade or a downgrade of HCK's Long-term local currency IDR will result in a similar action on the issue's ratings. Any positive or negative action on the parent's Long-term IDRs would likely be matched by a similar action on HCK's Long-term IDRs. This would also impact the National Rating and could result in a change in the Support Rating. HCK's ratings are as follows: Long-term foreign currency IDR: 'BB-'; Outlook Stable Short-term foreign currency IDR: 'B' Long-term local currency IDR: 'BB-'; Outlook Stable National Long-term Rating: 'BBB+(kaz)'; Outlook Stable Viability Rating: 'b' Support Rating: '3' Contacts: Primary Analyst Dmitri Vasiliev Associate Director +7 495 956 5576 Fitch Ratings CIS Limited 26 Valovaya Street Moscow 115054 Secondary Analyst Konstantin Yakimovich Analyst +7 495 956 9978 Committee Chairperson Alexander Danilov Senior Director +7 495 956 2408 Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 15 August 2012, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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