AG Bank Responded to Downgrade

JSC AG Bank plans to increase capital in 2015, the statement of the management said with reference to the deputy chairman Afghan Jalilov. This is a response to the message of Fitch Ratings on the bank's keeping long-term issuer default rating ("IDR") at the level of "B-" and its placement under observation in a "negative" list Rating Watch.

"The deterioration in the operating environment as a result of the devaluation of the manat marked by Fitch has led to a deterioration of the outlook on the ratings of banks in the country, including AGBank. As a result, the agency lowered by one notch the forecasts for the banks. That is, at banks with a "positive" outlook after the devaluation of the currency the future is "stable", and those with "stable" outlook have it "negative," said Jalilov.

Banks' capital is a buffer to absorb risks, and after 21 February capital of the bank has also slightly decreased. According to the press release from Fitch, a further decision on the status of the Rating Watch

AG Bank was established in 1992. Its shareholders are the International Finance Corporation (17.5%), the company Kazimir Partners (10%) and individuals, Genghis Asadullayev (27.532%) and Farzulla Yusifov (23.111%). In addition, the bank has 74 minority shareholders with shares in the aggregate 21.856%.

As of January 31, 2014 the bank's capital was 51 million 883.38 thousand manat, and the authorized capital was 25 million manat. --17D-