We believe Tsesna-Garant's competitive position in Kazakhstan's insurance market has strengthened following its improved operating performance and better risk selection. Moreover, the company's financial flexibility has improved, owing to its owner's continuing support. We consider Tsesna-Garant "strategically important" to Tsesnabank, but do not factor explicit support into our ratings because the entities' stand-alone credit profiles are at the same level. We are raising our ratings on Tsesna-Garant to 'B+' and 'kzBBB' from 'B' and 'kzBB+'. The stable outlook reflects our expectation that Tsesna-Garant will maintain moderately strong capital and earnings, and show gradual improvements in its operating performance. On July 24, 2015, Standard&Poor's Ratings Services raised its insurer financial strength and counterparty credit ratings on Kazakhstan-based Insurance Company
