Fitch Ratings has downgraded the long-term default rating of Azerbaijan OJSC Demir Bank from B- to CCC.
The rating agency's report said the short-term rating downgraded to C from the level B.
The agency notes the bank was unable to solve the problems of the capital and the bank is in urgent need of foreign support to restore its solvency.
In addition, the agency, recalling the plans for additional capital injections amounting to AZN 50 million, notes this may not be sufficient to restore solvency.
The agency believes that the fate of the bank depends on the Central Bank of Azerbaijan and on the use of coercive measures to comply with the prudential standards of capital adequacy.
Lowering the rating to CCC reflects Fitch's view of the real possibility of declaration of default by the bank.
Demir Bank has been operating since 1992. The bank's authorized capital is 21 million manat.
Turan has failed to get comments from the bank. -----71D
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