OREANDA-NEWS. Standard & Poor's Ratings Services said today it assigned its 'BB+' long-term issuer credit rating to the Kazakh Agrarian Credit Corp. (KACC) based in the Republic of Kazakhstan (foreign currency BBB-/Positive/A-3; local currency BBB/Positive/A-3; Kazakhstan national scale kzAAA). At the same time, 'B' short-term and 'kzAA' Kazakhstan national scale ratings were also assigned. The outlook is positive.

"The ratings are constrained due to KACC's customers--rural mutual credit associations--operating in the risky agricultural sector," said Standard & Poor's credit analyst Boris Kopeykin. "Rapid expansion of the company's loan portfolio in a currently sound macroeconomic environment, which leaves the business model untested, also constrains the rating. In addition, KACC's 20 largest borrowers account for 50% of the loan portfolio."

"The ratings are supported, however, by the strong government support that KACC, which is 100% state-owned, receives in the form of capital injections due to its public policy-based mandate of providing credit to rural mutual credit associations throughout Kazakhstan," added Mr. Kopeykin.