Fitch will downgrade Bereke Bank’s rating if it is sold to Lesha Bank from Qatar

Fitch Ratings, the international rating agency, has rated Bereke Bank at BB with a negative outlook. According to the agency’s press release, it will lower the rating for the bank once it is sold to Lesha Bank from Qatar.

«Fitch is expecting that once the sale of the bank to Lesha Bank is completed, the bank’s ratings will likely be downgraded. In our view, the likelihood of support being provided to Bereke from the Kazak state or from the bank’s new shareholder after the sale is uncertain and will be lower than its ‘BB’ Long-Term Issuer Default Ratings would suggest,» the agency said in a statement.

Fitch also said that it will likely affirm Bereke’s current ratings if the transaction does not proceed, as the government’s ability and propensity to support the bank has not materially changed. However, this is an unlikely scenario. The deal might be closed within the next six months.

«Fitch believes state support will be forthcoming to Bereke in the meantime so long as it remains owned by Baiterek,» the agency highlighted.

On February 14, 2024, the holding of Baiterek and the Qatar-based investment entity called Lesha Bank signed a preliminary agreement on purchasing 100% of a Kazakhstani bank. Even though it is still unclear which one bank will be sold, many experts believe that the two sides talked about Bereke Bank, a former subsidiary of the Russian Sberbank that was sold to Baiterek in 2022 when Western sanctions were imposed against Russia. Lesha Bank is operating on its home market in Qatar and the other Gulf states.