Despite the weak asset quality, we believe that Bank CenterCredit has the necessary liquidity for the fulfillment of its obligations in the medium term. We expect the improvement of bank capitalization in view of a merger with Tsesnabank and NBK's program of banking sector recapitalization. Considering the attractive yield of the US dollar-denominated perpetual subordinated debt (YTM 8.8%) and its expected repurchase, due to the gradual exclusion of perpetual bonds from the calculation of regulatory capital and their expensive service, we leave our recommendation to BUY Eurobonds of Bank CenterCredit unchanged.

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