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RA Moody's recalibrates Kazakhstan's national rating scale and repositions national scale ratings of Kazakh financial institutions

May 12, 2016 | Cbonds

Moody's Investors Service has today repositioned the national scale ratings (NSRs) of Kaspi Bank JSC , Bank CenterCredit and Fund Of Financial Support for Agriculture in conjunction with the recalibration of the Kazakh national rating scale.

NSRs, which provide a measure of relative creditworthiness within a single country, are derived from global scale ratings (GSRs) using country-specific maps. The adoption of a revised correspondence between Moody's GSRs and the Kazakh national scale follows the publication of Moody's updated methodology "Mapping National Scale Ratings from Global Scale Ratings"

With approximately 25 fundamental issuers in Kazakhstan rated by Moody's, the new map has been designed using the standard approach, whereby the map design is selected from a set of standard maps based upon the anchor point, or the lowest GSR that can map to a Per the standard approach, Kazakhstan's anchor point is being lowered to Baa3, which is equal to the sovereign bond rating, from the previous level of Baa1. All GSRs from Baa3 to Caa2 will map to two ratings on the national scale. As a result of these changes, GSRs of Caa2 and above will correspond to higher NSRs on the Kazakh scale than they did previously.

Consequently, primary long-term NSRs of three Kazakh financial institutions are being repositioned an average of 2.3 notches higher. The repositioned NSRs of individual financial institutions do not signify a change in credit risk, since the GSRs for these issuers remain unchanged.

As a result of the recalibration, the level of risk associated with a particular Kazakh NSR level (e.g. has changed in many cases. NSRs have no inherent absolute meaning in terms of default risk or expected loss; they are ordinal rankings of creditworthiness relative to other domestic issuers within a given country. A historical probability of default and/or expected loss consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. However, both the probability of default and the expected loss of an NSR may change if and when a country's national scale is remapped.


Issuer: Kaspi Bank JSC

NSR LT Bank Deposit rating repositioned to from

Issuer: Bank CenterCredit

NSR LT Bank Deposit rating repositioned to from

Issuer: Fund of Financial Support for Agriculture

NSR LT Issuer rating repositioned to from


NSRs are assigned by applying the published correspondence from GSRs. Where a single GSR maps to multiple NSRs, rating committees assigned higher or lower NSRs to individual issuers and debts depending on their relative credit position within the same GSR category, using the same methodologies as were used to determine the GSRs themselves.


The NSRs would face upward or downward pressure if their corresponding GSRs are upgraded or downgraded, unless this is in conjunction with a sovereign rating action that results in another recalibration of the Kazakh national scale with an offsetting impact on NSRs. In addition, the NSRs may be repositioned upwards (downwards) if Kazakhstan's sovereign is downgraded (upgraded) and the map is revised accordingly, but the corresponding GSRs have not changed as a result of the sovereign action. Because of the higher granularity of national scales, NSRs may also face pressure due to changes in creditworthiness that are not sufficient to cause a change in the corresponding GSR, measured using the same methodologies used to determine the GSR.


The principal methodology used in rating Bank CenterCredit and Kaspi Bank JSC was Banks published in January 2016.

The principal methodologies used in rating Fund Of Financial Support for Agriculture were Banks published in January 2016, and Government-Related Issuers published in October 2014.

Company: Kazakhstan

Full company nameRepublic of Kazakhstan
Country of riskKazakhstan
Country of registrationKazakhstan


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