Moody’s Upgraded the Long-term Deposit Rating of Jusan Bank to Ba3 with the Positive Outlook

Almaty. November 2, 2023. Moody's Investors Service has upgraded long-term deposit rating of First Heartland Jusan Bank JSC (Jusan Bank) to Ba3, as well as the Baseline Credit Assessment (BCA) and the Adjusted BCA from b3 to b2. The outlook on the bank’s long-term deposit ratings remains positive. The short-term ratings of the bank were affirmed.

Concurrently, Moody’s upgraded the bank’s national scale ratings (NSR) — long-term national scale deposit rating to from and long-term national scale counterparty risk rating (CRR) — from to

As noted in Moody’s press release, Jusan Bank’s ratings upgrades reflect the bank’s improved financial fundamentals, having benefited from the improved operating environment in 2022 and 2023 which enabled it to gain in asset quality and profitability, as well as solvency.

In particular, stronger revenues allowed the bank for creating additional provisions, which reduced the share of problem loans in the bank’s loan portfolio thanks to the work-out of problem loans and better credit quality of new lending.

‘The upgrade of the BCA to b2 from b3 reflects improved asset quality, solvency and profitability while liquidity remains robust. Also, this rating action reflects a revised assessment as per Moody’s Investors Service’s General Principles for Assessing Environmental, Social and Governance (ESG) Risks Methodology. Positive improvements in credit metrics as a result of better risk management, more mature strategy and less shareholder risk are reflected in a better governance issuer profile scores of G-4 compared to previously assigned scores of G-5 for the bank. As a result, the bank’s ESG credit impact scores improved to CIS-4 from CIS-5,’ — Moody’s notes.

The press release highlights that change of Jusan Bank shareholder became a positive factor, as it made the ownership structure more transparent and reduced the risks of volatility of its client and deposit bases.

The positive outlook on the long-term deposit ratings reflects Moody’s expectation that the bank’s maturing strategy and lower shareholder risk will translate into stronger client base and revenues which will be positive for asset quality and loss absorption capacity.

Moody’s expects the rating to be likely upgraded as the bank benefits from the improved operating environment.

‘We are glad that the current transformations of Jusan Bank, more efficient business, improved credit scoring and robust governance system were highly scored by Moody’s Investors Service. The Bank shall further implement its strategy aimed at improving the fundamental financial metrics and securing the position on a highly competitive Kazakhstani market,’ — commented Arman Mangitov, Jusan Bank CEO.

Jusan Bank Press Service:

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