International agencies Moody's and Fitch upgraded ACC's credit rating

On September 16, the rating agency Moody's Investors Service raised the international credit rating of ACC from Baa3 to Baa2 with a “Stable” outlook (earlier in 2023 the rating was raised from Ba1 to Baa3 with a “Positive” outlook).

The assigned rating indicates that ACC has an important role in the state policy to support the agro-industrial sector and has the support of the state, as well as the sole shareholder of JSC National Management Holding Baiterek, which determines the structure of its debt and dividend policy.

In addition, September 17, Fitch Ratings also upgraded the international credit rating of JSC “Agrarian Credit Corporation” from “BBB-” to “BBB” with Outlook “Stable”.

The upgrade reflects Fitch's view of ACC's increased interaction with the government due to its expanding role in providing affordable credit to agricultural producers.

Thus, a positive change in the credit rating of the Corporation at once from 2 international agencies indicates an increase in the reliability of ACC as the main Operator to support the agro-industrial complex of the Republic of Kazakhstan.

“Agrarian Credit Corporation is annually evaluated by leading international rating agencies. This is necessary as a systemic measure to improve the image and expand the area of attracting investment from both domestic investors and international financial institutions, which in general allows to support the agro-industrial complex of the country,” - said the Chairman of the Board of JSC ‘Agrarian Credit Corporation’ Almat Ashirbekov.

Positive changes that affected the improvement of ratings, allowed to change the terms of lending to farmers. The terms of credit funds for spring field and harvesting works have increased.

If earlier loans were issued short-term, and they had to be repaid by December 1, now the financing is medium-term, the terms of repayment have been increased (repayment of 50% of loans is now made by December 1, the remaining 50% - by March 1), which gives farmers the opportunity to sell their crops at a more favorable price.

This year, a new program “Kin dala 2” was opened, a preferential interest rate of 5% per annum is provided for borrowers, and the Damu Fund's guarantee of 85% of the loan amount was introduced.

In addition, a number of services were developed for the convenience of farmers, including a mobile application, thanks to which ACC clients can receive services promptly.