Moody’s Revises IBA Rating

Today, Moody's announced a review of the ratings of OJSC International Bank of Azerbaijan, which has been reduced in many ways.

According to information, the rating of the bank's short-term and long-term deposits in foreign currency decreased from «Ba3» to «B1». IBA Rating for the senior unsecured debt fell from «Ba3» to «B1», long-term foreign liabilities - from «B1» to «B2». The short-term deposit rating and the bank's assessment of risks have been confirmed at the level Not-Prime. The outlook on the long-term and unsecured deposit rating of IBA is negative.

The Moody's report noted that the reduction in the IBA rating figures is due to the deterioration of its financial stability. Additional capitalization of the state-owned bank in the amount of 600 million manats by the government did not help the bank. The IBA position on the capital is still negative. This is due to the losses accumulated before, according to the Moody's report.

According to calculations of the agency, external IBA commitments at the end of 2016 amounted to 4 billion manats or 2.1 billion US dollars. The bank has a limited liquidity in foreign currency. -----08D