OREANDA-NEWS. Fitch Ratings last week assigned Alliance Finance's (AF) recent RUR3bn five-year bond issue due June 2012 a Long-term rating of 'BB-' (BB minus) and a National Long-Term Rating of 'A+(rus)', the Kazakhstan Stock Exchange (KASE) reports.

"The ratings reflect the unconditional and irrevocable guarantee of the timely and full repayment of the issue from parent company Alliance Bank (Alliance)," says Alexei Kechko, associate director with Fitch's Banking group.AF is a Russia-domiciled subsidiary of Kazakhstan-based Alliance.

Alliance's guarantee of the notes will rank at least equally with all the bank's present or future unsecured senior obligations, save those preferred by relevant provisions of law and of general application. Under Kazakhstani law, the claims of retail depositors rank above those of other senior unsecured creditors. At the end-1H07 retail deposits accounted for 11% of Alliance's total liabilities, according to the bank's unaudited but reviewed IFRS accounts.

Alliance is controlled by Seimar Alliance Financial Corporation. The bank has been growing very rapidly and was one of the four largest in Kazakhstan of August 31, 2007. Strategy is focused on retail lending and lending to SMEs.