S&P Global Ratings revised its long-term credit rating for Jýsan Bank from В- to В, and confirmed its short-term credit rating В. The outlook is Stable. At the same time, the Bank's rating has risen according to the national scale from kzBB to kzBB+.
The Agency believes Jýsan Bank has accumulated considerable capital and liquidity cushions, which are supposed to enable the Bank to withstand the implications of the economic downturn and operating environment deteriorated by the COVID-19 pandemic and drop in oil prices.
S&P admits that the Jýsan Bank new management team has achieved much in maintaining a low level of risks and rehabilitation of its toxic assets created earlier.
"In these circumstances, the raising of the rating of Jýsan Bank appears to be a unique event that confirms the Bank's steadiness and reliability," Aibek Kayip, Chairman of the Management Board of Jýsan Bank, commented on the Agency's decision. "The capital adequacy ratios are among the highest ones in the market. It's a great success."
S&P emphasizes that the Bank has been maintaining its substantial liquidity cushion thanks to its risk mitigation strategy. In addition, the Bank has managed to restore its deposit base – clients' funds were growing in 2019 and in the early 2020.
The Stable outlook comes from the Agency's view that the Bank's current capital stock, considerable liquidity cushion and strategy aimed at minimizing the risks are expected to retain its current credit risk profile during the coming 12-18 months.
The Bank ended the 2019 fiscal year with net profit of 34 billion Tenge.