Moody’s upgraded KazakhExport’s rating to Baa2
Сhanged issuer’s outlook to stable.
August 18, 2021. Moody's Investors Service upgraded insurance financial strength rating (IFSR) of KazakhExport Export Insurance Company JSC to Baa2 from Baa3 and changed the issuer outlook to ‘Stable’ from ‘Positive’ in line with the Sovereign rating.
Upgraded IFSR of EIC KazakhExport JSC reflects its strong institutional and financial ties with the government via its sole shareholder – National Management Holding Baiterek JSC. Regular support provided to KazakhExport in the form of both capital injections and state guarantees against a significant part of its insurance portfolio allow to stay it stable and serve as a security to discharge insurance obligations to local exporters engaged in processing industry.
Analyzing activities of EIC KazakhExport JSC experts indicated that the Company in fact fulfils a public-policy role in the development of credit insurance business in Kazakhstan as the key operator of the National Export Strategy of the government. It also develops tools to support Kazakhstan’s exporters demonstrating consistently strong capitalization, as reflected in its limited underwriting leverage, sound asset quality good financial flexibility, efficient promotion of underwriting standards.
This rating action follows the ratings' upgrade of Baiterek National Management Holding JSC on 17 August 2021 which is a parent company of EIC KazakhExport JSC. Baiterek’s long-term rating was upgraded from Baa3 to Baa2 and short-term issuer’s rating was upgraded from P-3 to P-2 after sovereign ratings were upgraded.
