BAKU, Azerbaijan, September 9. Moody’s Scores
has affirmed Kazakhstan’s Damu Entrepreneurship Growth Fund
JSC’s (Damu) long-term native and international foreign money issuer scores at
Baa2 and short-term issuer scores at Prime-2, with a steady
outlook, in keeping with the company.
Moody’s additionally affirmed Damu’s long-term nationwide scale issuer
ranking at Aa2.kz. Damu is 100% owned by Baiterek Nationwide
Funding Holding JSC (Baiterek, Baa1 steady), the
government-owned improvement establishment.
Damu’s Baa2 issuer scores incorporate a five-notch uplift from
its b1 standalone evaluation, reflecting the company’s view of a
very excessive degree of affiliate assist from Baiterek, which is 100%
owned by the Authorities of Kazakhstan.
“Damu’s Baa2 issuer scores incorporate a five-notch uplift from
its b1 standalone evaluation, reflecting our view of a really excessive
degree of affiliate assist from its dad or mum, Baiterek, which is 100%
owned by the Authorities of Kazakhstan (Baa1 steady),” Moody’s
mentioned.
The affirmation additionally displays Damu’s public-policy position as a
nationwide improvement establishment. Moody’s famous that entry to
low-cost authorities funding, in addition to authorities transfers and
charges on ensures protecting dangers associated to credit score ensures
prolonged to native banks, helps the corporate’s earnings technology
capability.
Moody’s famous that Damu’s capitalisation stays robust, whereas
drawback loans stay at low ranges. On the similar time, the company
highlights dangers associated to Damu’s assure enterprise, which is
targeted largely on the comparatively high-risk small and medium-sized
enterprise (SME) phase. The corporate’s funding profile additionally
stays undiversified and depending on government-related
sources.
Credit score dangers are primarily pushed by Damu’s ensures
portfolio, which amounted to nearly 3.5 occasions tangible frequent
fairness (TCE) and exceeded complete belongings as of March 2026 following
fast progress below authorities assist packages. Moody’s famous that
guarantee-related dangers have up to now been greater than offset by
earnings, however may put important strain on profitability because the
portfolio seasons, yields decline, and losses emerge.
The company additionally famous that ensures are largely supplied to
higher-risk SMEs with restricted collateral, growing potential
losses because the portfolio matures.
Damu’s capitalisation stays a key power. Its
TCE-to-tangible managed belongings ratio stood at 43% as of March 2026
and at round 17% when ensures are included. Moody’s considers
these capital buffers adequate to soak up potential losses from
each balance-sheet exposures and ensures, supported by robust
inside capital technology and a historical past of presidency capital
injections.
Damu’s profitability, measured by web earnings to common managed
belongings and ensures, reached 2.6% within the first three months of
2026, up from 1.8% in 2025. Income is generated primarily from web
curiosity earnings on funds channelled to banks for SME lending and
charges from its ensures enterprise.
Nonetheless, Moody’s famous that profitability stays uncovered to
credit score losses on financial institution exposures, potential losses from the sizeable
ensures portfolio and one-off positive aspects or losses associated to state
funding and low-cost lending.
Damu maintains a modest liquidity cushion, with liquid belongings
equal to round 10% of complete belongings and ensures as of March
2026. Moody’s mentioned the corporate stays susceptible to defaults on
giant mortgage exposures or assure calls, though liquidity is
adequate to cowl repayments due in 2026-2027 and is supported by
the long-term nature of its predominantly government-related
funding.
“We count on a “Very Excessive” assist from its dad or mum, Baiterek. This
results in 5 notches of uplift from the corporate’s standalone
evaluation of b1. Our assumption of “Very Excessive” chance of
assist displays Damu’s oblique 100% authorities possession (through
Baiterek); its improvement mandate and significance to the
authorities’s financial and social agenda; and a robust monitor document
of assist,” Moody’s mentioned.
The steady outlook on Damu is in keeping with the steady outlook on
Baiterek and Kazakhstan’s sovereign ranking. It additionally displays
Moody’s expectation that Damu’s standalone creditworthiness will
not change considerably over the subsequent 12-18 months.
In response to Development’s evaluation, the affirmation comes amid a broader
sequence of ranking actions involving Kazakhstan and main
state-linked entities. On August 21, 2026, S&P International Scores
raised Kazakhstan’s sovereign credit standing to BBB from BBB-, with
a steady outlook. Following the sovereign improve, S&P additionally
raised the scores of a number of main Kazakh organizations, together with
KazMunayGas NC JSC (KMG), Damu Entrepreneurship Growth Fund
and the Growth Financial institution of Kazakhstan.
S&P raised Damu’s long-term credit standing to BBB from BBB-,
with a steady outlook, whereas the Growth Financial institution of Kazakhstan’s
long-term and short-term credit score scores have been upgraded to BBB/A-2,
additionally with a steady outlook.
The newest ranking actions spotlight the continued strengthening
of the credit score profiles of main state-linked establishments in
Kazakhstan. In Damu’s case, Moody’s evaluation exhibits that the
establishment’s robust capital place and profitability are
necessary supporting components, whereas its increasing ensures
portfolio stays the principle supply of credit score and earnings danger.
The five-notch uplift from Damu’s standalone evaluation additionally
underscores the significance of Baiterek and authorities assist to
the fund’s total credit score profile. On the similar time, Moody’s focus
on guarantee-related dangers signifies that the sustainability of
Damu’s monetary efficiency will more and more rely on the
high quality and efficiency of the SME portfolio supported by means of
authorities packages.
