OREANDA-NEWS. On November 15, 2007 Fitch Ratings has upgraded Kazakhstan-based ATF Bank's (ATF) Long-term foreign currency Issuer Default Rating (IDR) to 'BBB+' from 'BB-' (BB minus); Short-term IDR to 'F2 from 'B' , reported the press-centre of KASE.

All the ratings are removed from Rating Watch Positive (RWP). A Stable Outlook is assigned to ATF's Long-term IDR. Fitch has also withdrawn the Support Rating Floor in line with Fitch's current treatment of institutional support. The Individual rating remained at 'D'.

These rating actions follow the recent completion of the acquisition of 95,6% of common stock in the bank by one of Italy's major commercial banks, UniCredit S.p.A. (UCI, 'A+'/'F1'/Outlook Positive), through its Vienna-based subsidiary Bank Austria Creditanstalt.

The upgrades reflect Fitch's view of UCI's greater ability - as indicated by its Long-term IDR - to provide the bank with support in case of need, compared with that of coming from Kazakhstani authorities. ATF's Long-term foreign currency IDR is rated at Kazakhstan's 'BBB+' Country Ceiling, while a further upgrade would only be possible if Kazakhstan's Country Ceiling be upgraded. A downgrade, however, of the Country Ceiling or UCI's Long-term IDR could result in a downgrade for ATF. However, taking into account Stable Outlook on Kazakhstan's Long-term IDR and Positive Outlook on UCI's Long-term IDR, a shift in ATF's Long-term IDR is not expected at present.

ATF's deposit base has been rather stable during the market turbulence in Q307 according to NBK data. Furthermore, the bank has successfully repaid a large USD550m syndicated loan in October 2007. Fitch believes that ATF's Individual rating of 'D' reflects the risk inherent in ATF's very rapid asset growth, high construction sector and borrower concentrations, increased pressure on capital and significant reliance on international funding. Fitch will conduct a full review of ATF's Individual rating in the forthcoming weeks, also considering ATF's potentially wider access to funding and improved capitalisation following the change in ownership.

At end-9M07 ATF, was the fifth-largest bank in Kazakhstan holding around 9,2% of banking system assets. The bank's business scope included large corporate and SME lending and has been aggressively developing retail business as well. Currently, UCI holds 95,6% of voting shares and 85% of preferred shares in ATF. Fitch was informed that UCI will attempt to consolidate the remaining voting and preferred shares through a public tender in the near-term.