On October 1, 2020 Fitch Ratings has confirmed the Issuer's long-term default ratings ("IDRs") Kazakhstan Mortgage Company in foreign and national currency at the level of "BBB-" with "Stable" outlook. The short-term foreign currency IDR is confirmed at "F3". Fitch also confirmed the long-term rating of the company's outstanding priority debt obligations at "BBB-".
Kazakhstan Mortgage Company was founded in 2000 and since 2013 has been operating under the management of Baiterek NMH JSC. Since its establishment, the KMC has been responsible for providing affordable housing to the population of Kazakhstan through participation in public housing programs. This assessment is also supported by the recently adopted government regulation, according to which the company was designated as the Single Operator of housing construction in Kazakhstan. Under the new regulation, the company is considered as the main consolidating structure in the public housing sector, and with this in mind, two other Baiterek subsidiaries operating in the housing construction sector – Baiterek Development and the Housing Guarantee Fund – are subject to merger with the KMC by the end of 2020.
The main functions of the KMC include stimulating the mortgage market by introducing mortgage programs and issuing bonds, which, in combination with the purchase of mortgage portfolios of commercial banks, provides long-term market funding. In addition, the company plans to complete the securitization transaction for the issue of mortgage-backed securities by the end of 2020, which will contribute to the further development of the capital market in Kazakhstan.