Fitch Affirms Kazakhstan's Bank Centercredit at 'BB-'

Fitch Ratings-London/Moscow-22 February 2007: Fitch Ratings has today affirmed Kazakhstan-based Bank Centercredit's ("BCC") ratings at Issuer Default 'BB-' (BB minus), Short-term 'B', Individual 'D' and Support '3'. The Outlook on the Issuer Default rating ("IDR") remains Stable.

BCC’s Issuer Default, Short-term and Support ratings reflect Fitch’s view of the modest likelihood of state support being available to the bank in case of necessity. The Individual rating of BCC reflects its very rapid growth, the relatively high concentration in the bank’s loan book and its moderate capitalisation, as well as certain weaknesses in the operating environment. However, the Individual rating also considers the bank’s strong profitability, relatively well-diversified funding base and low reported levels of loan impairment to date.

"Fitch does not expect the support floor of BCC's IDR to change, given our current view of the authorities' propensity to provide support to banks of BCC's size," says Alexei Kechko, Associate Director of Fitch's Financial Institutions Group in Moscow. "Although significant gains in market shares, in particular in a larger banking sector, could cause Fitch to reconsider its view of the sovereign's propensity to provide support, we note that the bank’s growth rate has been and is planned to remain somewhat lower than the exceptional pace of expansion of the Kazakhstani banking sector as a whole."

Movement in BCC’s Individual rating is not expected in the near-term. However, a moderation in growth rates and an extended track record of good asset quality and performance would be positive for the bank’s standalone credit profile.

BCC was one of the six largest banks in Kazakhstan, with a market share in assets of around 7.8% at end-September 2006. It focuses primarily on the SME and retail segments, utilising its nationwide network. Fitch is informed that the Chairman of the Board of Directors, Bakhytbek Bayseitov, and senior management own a 51% stake in the bank.