Slammed by Moodys Investors Services sharp downgrade in the corporate rating, the DPR bonds of Kazakhstans BTA Bank have likewise fallen hard, again.
The agency Monday cut the stand-alone rating of four deals maturing in 2015 to Ca from B1 following the downgrade of a slew of ratings on the originator.
Concerns are swirling over accelerated payments on BTAs DPR program, which was supposed to kick in after Moodys last downgrade tripped early amortization triggers. A government fund that now owns BTA has said that it might withdraw support if investors insist on acceleration (see ASR, April 2009).
The most recent downgrade doesnt trip additional triggers or further accelerate payments.
The downgrades on the originators rating reflect the increasing likelihood of default and debt restructuring by BTA Bank and Temirbank stemming from the ongoing deterioration of these banks financial strengths and reduced probability of government support to honor their foreign liabilities.