Fitch Ratings has upgraded
Fitch has also upgraded the bank's National Long-Term Rating to '
The rating action follows the upgrade of parent
Key Rating Drivers
Altyn's IDRs and National Rating are driven by Fitch's assessment of a high probability of support from CNCB, as reflected by the bank's 'bbb' Shareholder Support Rating (SSR). This view reflects CNCB's majority ownership (50.1%), high reputational risks for CNCB in case of the subsidiary's default, and a low cost of potential support for the parent. At end-3Q23, Altyn's share in CNCB's total assets was a low 0.2%.
The one-notch difference between Altyn's and CNCB's Foreign-Currency IDRs captures the subsidiary's only moderate role in the group relative to other foreign subsidiaries, the presence of a large minority shareholder,
Altyn's '
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of Altyn's IDRs and National Long-Term Rating would be triggered by: a downgrade of the parent's IDRs; a sale of CNCB's controlling stake to a lower-rated entity; or Fitch's view that CNCB's propensity to support the subsidiary has weakened.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Altyn's IDRs would be upgraded if CNCB's IDRs are upgraded. Fitch does not expect a narrowing of Altyn's notching with the parent's ratings in the medium term because of the presence of a large minority shareholder,
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
Altyn's Long-Term IDRs are driven by potential support from CNBC.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation of the materiality and relevance of ESG factors in a rating decision. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
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