OREANDA-NEWS. August 17, 2010. Moody's Investors Service has assigned the following long-term local currency debt ratings to Kazinvestbank's KZT11.5 billion (approximately USD78 million) multiple seniority bonds programme: B2 for senior unsecured bonds issues and B3 for subordinated bonds issues, reported the press-centre of KASE.

At the same time Moody's assigned a B3 long-term local currency subordinated debt rating to the upcoming first drawdown of KZT4 billion (approximately USD27million) under this programme. The bonds represent a subordinated unsecured claim on the bank. The outlook on the programme and the upcoming subordinated debt ratings is stable, in line with the stable outlook on the bank's long-term bank deposit ratings.

The subordinated bonds have a tenor of five years, and the interest rate is fixed at 10% per annum. No covenants or put option clauses are provided in the bonds' documentation. Both the programme and the first drawdown have been registered with Kazakhstan's FSA (financial services regulator).

The B3 rating reflects subordination of the bonds to Kazinvestbank's senior obligations, including deposits, which are rated B2 with a stable outlook.

Moody's previous rating action on Kazinvestbank was implemented on 21 July 2010 when the rating agency assigned the following global-scale ratings: a B2 long-term and Not-Prime short-term local and foreign-currency deposit ratings, and an E+ bank financial strength rating (BFSR). A stable outlook was assigned on all of the bank's ratings.

The principal methodologies used in rating Kazinvestbank were "Bank Financial Strength Ratings: Global Methodology", published in February 2007, and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology", which was published in March 2007 and can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website.

Headquartered in Almaty, Kazakhstan, Kazinvestbank reported total audited IFRS consolidated assets and net income of USD601 million and USD0.7 million, respectively, at year-end 2009 (2008: USD567 million and USD2.1 million, respectively).