OREANDA-NEWS. October 26, 2009. Fitch Ratings has assigned Kazakhstan's ATF Bank (ATF) a local currency long-term Issuer Default Rating (IDR) of 'BBB' with a Negative Outlook, and a National Long-term Rating of 'AAA(kaz)' with a Stable Outlook, reported the press-centre of KASE.

The bank's other ratings are:

- Foreign currency long-term IDR 'BBB'; Outlook Negative;

- Short-term IDR 'F3';

- Individual 'D/E' and                                    

- Support '2'.

Fitch has also assigned the recently registered KZT15 billion Series 4 senior unsecured note ratings of Long-term 'BBB' and National Long-term AAA(kaz)'.

The KZT15 billion two-year floating-rate bonds are expected to be placed in October-November 2009. ATF will have the right to prepay them at nominal value at each of the semi-annual coupon dates. The terms of the notes also contain a change of control clause under which bondholders would receive the right to put the notes should UniCredit Bank Austria AG (UCA) cease to control a majority stake in ATF (UCA currently owns a 99.7% stake).

Interest payments will be equal to annual inflation plus 1.5% per annum, but cannot be less than 8% or higher than 13% per annum. The bank's obligations under the notes are ranked at least equally with the claims of other senior unsecured creditors of ATF. Under Kazakhstani law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-September 2009, retail deposits accounted for 20% of ATF's total liabilities, according to local GAAP accounts.

ATF was the fourth-largest bank in Kazakhstan, holding around 10.0% of system assets, at end-September 2009. It is primarily a corporate bank with 144 outlets located throughout Kazakhstan. ATF is ultimately owned by UniCredit S.p.A. (UC, rated'A/F1', with a Negative Outlook by Fitch). UC has introduced experienced international senior management into ATF and internal procedures are being brought into line with those of the group.