On October 03, 2019, Fitch Ratings confirmed the long-term issuer default rating (“IDRs”) of the Kazakhstan Mortgage Company in foreign and national currency at the level of BBB-with a “Stable” forecast. The short-term foreign currency IDR is confirmed at the level of “F3”. Fitch also affirmed the company's long-term outstanding priority debt rating at BBB -.
Kazakhstan Mortgage Company is one of the main state agents in the Kazakhstani housing policy implementation, aimed at improving the availability of housing for the population in the Republic. The company has two main mandates: (1) management of the social rental housing portfolio, which accounts for about 80% of the total portfolio of social rental housing with the possibility of redemption, and (2) development of the mortgage market in the Republic.
The company's portfolio of rental housing under government programs increased to 140 billion KZT at the beginning of 2019 (compared to 118 billion KZT at the beginning of 2018), which supports the dominant position of the Kazakh Mortgage Company in this segment. The quality of the portfolio is stable, and the level of overdue debt is insignificant.
At the same time, Kazakhstan Mortgage Company continues to take steps for the development of the mortgage market in Kazakhstan, and in this context launched its own mortgage program “Orda” in October 2018. During the period from October 26, 2018 to October 08, 2019, the Company has issued 562 mortgage loans totalling 7.2 billion KZT.