BAKU, Azerbaijan, October 16. Fitch Ratings has
affirmed Astana Motors Finance TOO's (AMF) Long-Term Issuer Default
Rating (IDR) at 'B' and its National Long-Term Rating at 'BB(kaz)',
with stable outlooks, according to the agency's report.


Fitch said AMF's rating reflects its strong profitability,
moderate leverage and good asset quality, while also taking into
account the company's much smaller scale than international peers,
limited funding flexibility and short track record through the
cycle.


AMF is a Kazakhstan-based leasing company that provides finance
and operating leases for vehicles exclusively in Kazakhstan. Its
total assets amounted to $86 million at the end of the first half
of 2026. At the end of 2025, finance leases and operating lease
assets accounted for 65% and 24% of total assets, respectively,
while passenger cars represented more than 90% of leased
assets.


AMF is a subsidiary of Astana Motors, one of Kazakhstan's
largest automotive manufacturers, distributors and retailers. The
group supports the company's business origination, with 70% of new
business coming through its dealer network. However, AMF's small
scale, narrow product and geographic focus, dependence on a single
dealer group and short track record through the cycle constrain its
business profile.


Fitch also highlighted AMF's off-balance-sheet obligations
arising from co-guarantees provided in 2025 for Astana Motors group
companies in favour of ForteBank. The total nominal amount of the
guarantees was 102 billion tenge, although AMF's obligations are
limited to its pro rata share of net assets within the pool of
co-guarantors.


The fair value of the guarantee obligations disclosed in the
company's audited accounts for 2025 amounted to 454 million tenge,
or 6% of its equity. Most of the guarantees expire between 2027 and
the first half of 2028.


"We believe that contingent risk is currently contained, but
AMF's credit profile is sensitive to it," Fitch said.


The company's gross finance lease portfolio contracted by 2% in
2025 and 4% in the first half of 2026, following rapid growth in
2021-2022. Fitch said vehicle collateral and the relative liquidity
of passenger cars mitigate credit risk, while the operating lease
fleet exposes AMF to residual value risk. Concentration in one
country, product and asset class remains high.


AMF's asset quality improved in 2025. The impaired finance lease
ratio declined to 1% at the end of the year from 2.4% at the end of
2024, while total loss-allowance coverage of impaired receivables
increased to 157% from 62%.


Fitch said low impairment losses reflect vehicle collateral,
improving loan-to-value ratios as leases amortise, and the
company's effective recovery and remarketing capabilities. Gains
from the sale of leased assets also remained strong in 2025.







The agency expects some normalisation as rapidly originated
lease vintages mature and economic conditions remain challenging.
However, it expects the impaired finance lease ratio to remain low,
potentially moving towards 2% by the end of 2027. Fitch said the
recent improvement reinforces rather than materially changes an
existing rating strength.


AMF's pre-tax income-to-average-assets ratio declined to 5.1% in
2025 from 7% in 2024 and stood at an annualised 5% in the first
half of 2026. Gains from the sale of leased assets accounted for
25% of pre-tax income in 2025, compared with 29% in 2024. Fitch
expects this contribution to moderate but considers profitability a
rating strength, supported by wide margins and low impairment
charges.


The company's gross debt-to-tangible-equity ratio declined to
3.2 times at the end of the first half of 2026, compared with 4
times at the end of 2025 and 4.8 times at the end of 2024. Fitch
attributed the improvement to portfolio contraction and strong
retained profits rather than a structural change in risk
appetite.


Internal capital generation remained strong at about 20% of
beginning equity in 2025, after AMF distributed 44% of its net
income as dividends. Fitch expects leverage to remain between 3 and
3.5 times through the end of 2027, as retained earnings broadly
offset the resumption of growth and moderate dividend
distributions.


AMF relies heavily on funding from ForteBank but expects to
diversify its funding base through additional bilateral facilities
in the second half of 2026 and in 2027. Broadly matched asset and
liability maturities and fixed interest rates on both sides help
mitigate liquidity and interest-rate risks.


Fitch said an increase in AMF's gross debt-to-tangible-equity
ratio to above 7 times, particularly if driven by losses, could
lead to a downgrade. A deterioration in asset quality, with Stage 3
and Stage 2 exposures exceeding 10%, or a significant worsening of
AMF's funding profile or that of the wider group could also trigger
negative rating action.


An increased likelihood of a call on guarantees provided by AMF
to the parent group due to a deterioration in the group's
creditworthiness could also result in a downgrade. Enforcement of
these guarantees would result in a multi-notch downgrade.


Fitch considers an upgrade of AMF's rating unlikely in the near
term. Over the longer term, an expansion of the company's franchise
through a broader customer base and additional revenue streams,
together with a reduction in leverage to below 3 times while
maintaining tight control over impairment charges and operating
efficiency, could lead to positive rating action.