(The following statement was released by the rating agency) LONDON/MOSCOW, December 23 (Fitch) Fitch Ratings has assigned Kazakhstan-based SB JSC Home Credit and Finance Bank's (HCK) upcoming local bonds an expected Long-term rating of 'BB-(EXP)' and an expected National Long-term rating of 'BBB+(kaz)(EXP)'. The issue is expected to have a maturity of five years and pay a 9.5% coupon semi-annually. KEY RATING DRIVERS The issue's Long-term rating and National long-term rating correspond to HCK's Long-term local currency Issuer Default Rating (IDR) of 'BB-' and National Rating of 'BBB+(kaz)'. HCK's Long-term IDRs, National Rating and Support Rating reflect the moderate probability of the bank receiving support if needed from its parent, Russia's Home Credit and Finance Bank (HCFB, 'BB/Stable; bb'). Fitch's view on the probability of support is based on the bank's full ownership by HCFB, its small size relative to the parent (HCK accounts for 5% of HCFB's assets, limiting the cost of any potential support) and reputational risk for HCFB in case of the bank's default. The one-notch difference between HCFB and HCK's ratings reflects the cross-border nature of the parent-subsidiary relationship, HCK's so far limited track record of operations and some uncertainty about the long-term commitment of HCFB to support HCK in case of a prolonged deterioration of the operating environment in Kazakhstan. RATING SENSITIVITIES An upgrade or a downgrade of HCK's Long-term local currency IDR will result in a similar action on the issue's ratings. Any positive or negative action on the parent's Long-term IDRs would likely be matched by a similar action on HCK's Long-term IDRs. This would also impact the National Rating and could result in a change in the Support Rating. HCK's ratings are as follows: Long-term foreign currency IDR: 'BB-'; Outlook Stable Short-term foreign currency IDR: 'B' Long-term local currency IDR: 'BB-'; Outlook Stable National Long-term Rating: 'BBB+(kaz)'; Outlook Stable Viability Rating: 'b' Support Rating: '3' Contacts: Primary Analyst Dmitri Vasiliev Associate Director +7 495 956 5576 Fitch Ratings CIS Limited 26 Valovaya Street Moscow 115054 Secondary Analyst Konstantin Yakimovich Analyst +7 495 956 9978 Committee Chairperson Alexander Danilov Senior Director +7 495 956 2408 Media Relations: Anna Bykova, Moscow, Tel: +7 495 956 9901, Email: anna.this site Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.this site Additional information is available at this site Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 15 August 2012, are available at this site Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW. FITCHRATINGS. COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Nov 20 Saudi Arabia's biggest commercial bank cut its quote for three-month money in the interbank market on Sunday in a signal that rates could fall further as a liquidity crunch in the banking system eases. Saudi interbank offered rates soared this year, pressuring companies and banks seeking to raise funds, as low oil prices slashed flows of petrodollars into banks and forced the government to issue bonds domestically to fund a big budget deficit. Three-month SAIBOR hit a seven-year high of 2.386 percent last month, from below 0.80 percent in August 2015. In a sign of unusual stress on the system, it rose above the central bank's repurchase rate of 2.00 percent, which the central bank uses to supply funds overnight to banks caught short of money. In the past four weeks, however, rates have been falling by around 1 or 2 basis points each day, with three-month SAIBOR dropping back to 2.134 percent on Sunday from 2.148 percent at the end of last week. In a signal that rates could drop further, National Commercial Bank, the biggest bank, quoted three-month SAIBOR at 2.10 percent on Sunday, down from the 2.15 percent which it had quoted throughout this month. The government is the biggest shareholder in the bank.

An international banker familiar with the Saudi money market said rates appeared to be returning to more normal levels, though liquidity would not become loose again as long as oil prices stayed low. He suggested three-month SAIBOR might drop in coming weeks below the repo rate."For many years, SAIBOR has rarely if ever been above the repo rate for a significant amount of time. This was an extraordinary situation," he said. "Now to some extent the situation is normalising."Several factors are fuelling the downtrend in rates. In September and October, the central bank launched seven-, 28- and 90-day repurchase agreements that it could use to supply banks with funds; previously it had typically only used one-day repos.

The international banker said the central bank appeared to have tweaked regulations for the new repos to make them easier for commercial banks to use than the overnight repo. Pressure on liquidity has also been eased by the finance ministry's decision not to make a monthly issue of domestic bonds in October. It has not yet said whether it will resume issuance this month. The need for the government to sell debt domestically has been reduced, for now at least, by the government's success in issuing $17.5 billion of bonds overseas last month in its first international bond sale.

A central bank official said last week that the proceeds of the foreign bond sale had not yet been deposited in local banks. Bankers believe that if they are, that could provide a big boost to liquidity. The government has also improved liquidity conditions in the banking sector by releasing payments of money that it owed to private sector companies and delayed paying for months. Fahad al-Hammadi, chief of the National Contractors' Committee at the Council of Saudi Chambers, a business association, was quoted as saying by Sunday's Arab News that the government has made payments of 40 billion riyals