Moody’s upgrades our rating to investment grade

Rhea-AI Summary

Moody's has upgraded Kaspi Bank's long-term deposit ratings to investment grade Baa3 from Ba1 with a stable outlook. This upgrade reflects the sound profitability, liquidity, and resilience of Kaspi.kz's business model, which includes Fintech, Payments, and Marketplace Platforms. Moody's cited Kaspi.kz's proven business model and sound fundamentals as key factors. The improving operating environment in Kazakhstan, which recently saw its government rating upgraded to Baa1, is expected to further benefit the company.

Kaspi.kz's CEO, Mikhail Lomtadze, emphasized the company's Super App strategy and its trust among 14 million Kazakhstanis and 700,000 merchants. He also highlighted Kazakhstan's progress in developing a fast-growing, diverse, and modern digital economy with solid financial fundamentals.

Positive

• Moody's upgraded Kaspi Bank's long-term deposit ratings to investment grade Baa3 from Ba1
• Kaspi.kz's business model demonstrates sound profitability, liquidity, and resilience
• The company serves 14 million Kazakhstanis and 700,000 merchants
• Improving operating environment in Kazakhstan is expected to benefit the company's fundamentals
• Kazakhstan's government rating was upgraded to Baa1, indicating overall economic improvement

Negative

• None.

ALMATY, Kazakhstan, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Moody’s has upgraded its long-term deposit ratings to investment grade Baa3 from Ba1 with a stable outlook for Kaspi Bank, a core part of Kaspi.kz’s Fintech Platform. Moody’s cited sound profitability, liquidity and the resilience of Kaspi.kz’s proven business model including Fintech, Payments and Marketplace Platforms.

According to Moody’s:

• Kaspi.kz’s proven business model has demonstrated resilience throughout the economic cycle.
• Kaspi.kz has sound fundamentals, such as profitability, capitalisation and liquidity.
• The improving operating environment in Kazakhstan will further benefit the company’s fundamentals.
• Kazakhstan is seeing sustained progress diversifying its economy, enhancing its resilience and growth outlook.

The improving operating environment in Kazakhstan led Moody’s on 9 September 2024 to upgrade its Kazakhstan government rating to Baa1 from Baa2, with a stable outlook.

Mikhail Lomtadze, CEO & co-founder of Kaspi.kz, commented:

“Moody’s has tracked our company for many years and watched our unique and highly successful Super App strategy unfold. Today’s results recognise the hard work and dedication of our team here in Kazakhstan. We’re trusted by over 14 million Kazakhstanis and 700 thousand merchants, most of whom are small and medium-sized businesses.

The recognition of the progress being made by Kazakhstan’s government when it comes to delivering a fast-growing, diverse and modern digital economy, with solid financial fundamentals comes as no surprise to us.

Thank you to our consumers, merchants and everyone else in Kazakhstan who is playing their part driving the country’s rapid progress.”

About Kaspi.kz

Kaspi.kz’s mission is to improve people’s lives by developing innovative mobile products and services. To deliver upon this we operate a unique two-sided Super App model – the Kaspi.kz Super App for consumers and the Kaspi Pay Super App for merchants.

Through these Super Apps consumers and merchants can access our leading Payments, Marketplace, and Fintech Platforms. All our services are designed to be highly relevant to users’ everyday needs and enable consumers and merchants to connect and transact, using our proprietary payments network.

The combination of a large, highly engaged consumer and merchant base, best-in-class, highly relevant digital products and a capex lite approach, results in strong top-line growth, a profitable business model and enables us to continue innovating, delighting our users and fulfilling our mission.

Harvard Business School has written two case studies on Kaspi.kz which it continues to teach to its MBA students.

Kaspi.kz has been listed on Nasdaq since January 2024.

For further information david.ferguson@kaspi.kz +44 7427 751 275

Forward-looking statements

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Kaspi.kz. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might", the negative of such terms or other similar expressions. Kaspi.kz wish to caution you that these statements are only predictions and that actual events or results may differ materially. Kaspi.kz does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Kaspi.kz, including, among others, general economic conditions, the competitive environment, risks associated with operating in Kazakhstan, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to Kaspi.kz and its respective operations.

FAQ

What is Kaspi.kz's new Moody's rating as of September 13, 2024?

Moody's upgraded Kaspi Bank's long-term deposit ratings to investment grade Baa3 from Ba1 with a stable outlook on September 13, 2024.

Why did Moody's upgrade Kaspi.kz's (KSPI) rating?

Moody's cited Kaspi.kz's sound profitability, liquidity, and the resilience of its proven business model, which includes Fintech, Payments, and Marketplace Platforms, as reasons for the upgrade.

How many customers and merchants does Kaspi.kz (KSPI) serve as of September 2024?

As of September 2024, Kaspi.kz serves over 14 million Kazakhstanis and 700,000 merchants, most of whom are small and medium-sized businesses.

What was Kazakhstan's new Moody's rating as of September 9, 2024?

On September 9, 2024, Moody's upgraded Kazakhstan's government rating to Baa1 from Baa2, with a stable outlook.