Tsesnabank's ratings were changed by S&P Global Ratings from “B” to “B-” and placed on CreditWatch Negative.
The ratings were changed on deposit outflows in September and October due to the rush caused by the false rumors. S&P Global Ratings also notes the increased risk in the Kazakh banking system in general.
Indeed, in September-October, the Bank’s liquidity was under pressure. However, in November, due to the anti-crisis measures taken, the situation fundamentally changed. There is a positive trend in cash flows across all business lines. Since mid-November, the inflows have sustainably prevailed over the outflows.
Tsesnabank has both short-term and long-term funding, which allows us to comfortably fulfill all the obligations. The Bank operates steadily and reported c. KZT 21 bn of profit for the first 11 months 2018 according to management accounts.
Ulf Wokurka, Chairman of Tsesnabank’s Management Board, commented: “Unfortunately, in the current situation the rating agency was conservative in its decision, and the argument about the stabilization of deposits in November was not accepted as a crucial positive factor. Nevertheless, we are confident in restoring the Bank’s position and look forward to the rating upgrade in the near future”.