CIS Credit Monitor: KKB

KKB (B/Ba3/B-) reports Q1 2009 financial results
KKB published first-quarter results late last week. Overall, the results were weak and in line with the previous quarter. Asset quality deteriorated at a rapid pace and provisioning reserves continued to drain the bank’s profitability. Despite a similar trend likely to continue this year, we believe that current liquidity should be sufficient to meet short-term obligations. That said, we remain cautious on Kazakh risk following the restructuring of the banking sector and the limited support from the government.