Development of the National Market of Rating Services — Competitiveness of RFCA — Information-analytical materials — COMMITTEE OF THE NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN ON DEVELOPMENT OF THE REGIONAL FINANCIAL CENTRE OF ALMATY CITY

With the purpose of further development of the domestic securities market, adequate assessment of creditworthiness of Kazakhstani companies as well as their entrance to the Kazakhstani stock market (reduction of the price of rating services for small and medium companies), the National Rating Agency JSC Rating Agency of the Regional Financial Center of Almaty (RFCA RA) was established at the beginning of 2008.

Establishment of the RFCA RA will promote to reduction of the rating costs. Independence of the Rating Agency will be ensured by the diversified composition of shareholders including international rating agencies and foreign financial institutions. Thus, the RFCA activity will influence positively development of small and medium business in the country, promote to introduction of the bigger number of issuers to the stock market and activation of investors by providing them the opportunity of diversification of the investment portfolio. In the result, the market liquidity and transparency level will rise and the market will be more competitive.

Practice

The RFCA RA will ensure a high degree of readiness of domestic companies for taking-up options of the securities market (under conditions of Kazakhstan accession to the World Trade Organization) and integration of the Regional Financial Center in international financial markets.

Objectives of the RFCA RA:

Assignment of credit ratings to enterprises, banks, insurance companies, local self-government authorities, small and medium business companies according to the system specially developed for evaluation of credit risk level under conditions of the securities market;

Assignment of credit ratings to certain debt obligations of the borrower (bonds, loans) by using the National Scale;

Indications of assigned credit ratings;

General economic review of economy branches including operating information on the results of the production and economic activity of the branch as a whole and the largest companies in particular;

Determination of the tendency of the industry development, internal and external environment of the commodities market;

Analysis of the data on the industry financial indicators;

Analysis of the condition of companies including the data on production and financial indicators for reporting periods;

Strategic development programs and production and economic activities plans as well as the fundamental analysis of the financial condition of companies and their place in the industry;

Assessment of the corporate governance quality;

Elaboration and evaluation of business plans, feasibility studies of the projects, technical translation, studies and research by individual orders;

Holding of conferences, seminars, forums on different topics and in various sectors;

Trainings.