BAKU, Azerbaijan, September 7. Moody’s Ratings
has affirmed Kazakhstan's Agrarian Credit Corporation JSC’s (ACC)
long- and short-term local and foreign currency issuer ratings at
Baa2/Prime-2.


This was announced in a report published by Moody’s Ratings.


According to Moody’s, the issuer outlook remains stable. Moody’s
also affirmed ACC’s long-term national scale issuer rating at
Aa3.kz. ACC is 100% owned by Baiterek National Investment Holding
JSC (Baiterek, Baa1 stable), a government-owned development
institution.


"ACC's Baa2 issuer rating incorporates a five-notch uplift from
its b1 standalone assessment, reflecting our view of a very high
likelihood of affiliate support from its parent, Baiterek, which is
100% owned by the Government of Kazakhstan," Moody’s said.


The agency reported that the rating affirmation reflects ACC’s
public-policy role as a key state-controlled operating entity with
a special mandate to channel financial support to Kazakhstan’s
agricultural sector. This mandate and ownership structure enable
ACC to benefit from extraordinary support if needed, while
maintaining access to low-cost government funding and regular
capital injections.


Furthermore, Moody’s noted that ACC’s standalone assessment
benefits from high capital buffers, moderate leverage and good net
interest margins, which support its earnings generation capacity.
At the same time, the assessment reflects modest liquidity and high
asset risks, including a weak-performing loan portfolio and low
provisioning coverage.


Problem loans and leases accounted for 23% of ACC’s portfolio as
of June 2026, reflecting its exposure to the cyclical agricultural
sector and risks associated with its still-unseasoned investment
portfolio. Moody’s expects problem loans to remain elevated at
20%-25% over the next 12-18 months.


ACC’s tangible common equity to tangible managed assets
(TCE/TMA) ratio stood at around 20% as of June 2026. Moody’s
expects capitalization to remain broadly stable, supported mainly
by regular capital injections from Baiterek and internal earnings
generation.


The agency said ACC’s profitability remains strong, supported by
access to low-cost government funding and efficient operations,
which help offset high credit costs. Net profit-to-average managed
assets increased to 6% as of June 2026 from 4% in 2025, mainly due
to a one-off reversal of loan loss provisions following a
reassessment of collateral values.


ACC maintains limited unrestricted liquidity buffers, while
refinancing risks are mitigated by ongoing parental funding matched
to loan maturities.







"We expect a 'Very High' support from its parent, Baiterek. This
leads to five notches of uplift from the company's standalone
assessment of b1," Moody’s said.


The agency said its assumption of a "Very High" probability of
support reflects ACC’s indirect 100% government ownership through
Baiterek, its development mandate and importance to the
government’s economic and social agenda, as well as a strong track
record of support.


The Aa3.kz long-term national scale issuer rating continues to
reflect ACC’s relative position within the national scale rating
bands corresponding to its global scale ratings.


The stable outlook on ACC is in line with the stable outlook on
Baiterek and Kazakhstan’s sovereign rating, and reflects Moody’s
expectation that ACC’s standalone creditworthiness will not change
significantly over the next 12-18 months.


According to Trend’s analysis, the affirmation comes amid a series
of rating upgrades for Kazakhstan and major state-linked entities.
On August 21, 2026, S&P Global Ratings raised Kazakhstan’s
sovereign credit rating to BBB from BBB-, with a stable outlook.
Following the sovereign upgrade, S&P also raised the ratings of
several major Kazakh organizations, including KazMunayGas NC JSC
(KMG), Tengizchevroil, Damu Entrepreneurship Development Fund and
the Development Bank of Kazakhstan.


S&P raised KMG and Tengizchevroil long-term global scale
ratings to BBB from BBB-. Damu’s long-term credit rating was also
raised to BBB from BBB-, with a stable outlook, while the
Development Bank of Kazakhstan’s long-term and short-term credit
ratings were upgraded to BBB/A-2, with a stable outlook.


The series of rating upgrades points to a broader improvement in
the assessment of Kazakhstan’s economic environment. S&P’s
upgrade of the sovereign rating has been followed by higher ratings
for major state-linked companies and financial institutions. It
indicates that the stronger sovereign credit profile is also being
reflected in the assessment of key borrowers in the Kazakh
economy.


Against this backdrop, Moody’s affirmation of ACC’s Baa2 rating
highlights the continued importance of the government support
framework for state-linked financial institutions. For ACC, the
strong likelihood of support from Baiterek remains a key factor
underpinning its rating, while the company’s capital buffers and
profitability provide additional support to its standalone credit
profile.