S&P Global Ratings raised its long- and short-term credit ratings on Tsesnabank to “B-/B” from “SD” with a stable outlook on ownership change, large additional capitalization and loan book disposal.
As positive rating factors, S&P Global Ratings views the prompt measures taken by Tsesnabank’s new shareholder – First Heartland Securities JSC, namely a KZT 70 billion recapitalization of the Bank.
In less than two weeks since the shareholder change, significant additional injections have occurred, which allowed the Bank to continue to comfortably fulfill its obligations to its clients. The Bank also fully repaid the stabilization loan previously provided by the National Bank.
“The rating upgrade has been the first result of the new team’s work to restore Tsesnabank’s market position and strengthen customer confidence”, commented Mr Bekzhan Pirmatov, Chairman of Tsesnabank’s Management Board. “We are satisfied with the prompt rating review by S&P Global Ratings, as the situation fully stabilized after we had recapitalized the Bank for the largest amount in its history”.
The next task to be solved by Tsesnabank’s new management team is to approve and implement the new development strategy that will improve the Bank’s business position and ensure the growth of its deposit portfolio and other key indicators for further rating upgrade.
“We intend to fully restore the confidence of our depositors. Please be assured that the shareholder – First Heartland Securities is committed to continue the development of Tsesnabank and its entire branch network, ” said Mr Pirmatov.