Confirmation of the issuer default rating, support rating, the rating of the potential government support, as well as senior debt rating of the International Bank of Azerbaijan (IBA) reflects Fitch's view that there is a moderate probability of support for the government in case of need.
The rating agency assesses plans to recapitalize the bank up to 500 million manat by the end of 2016, as moderately positive. However, according to its peer group, the planned growth of the loan portfolio is unlikely to lead to significant improvements in capital adequacy ratios. It is noted that due to the placement of Eurobonds worth $ 500 million. In the first half of 2014 short-term financial risks of the bank were reduced. The state of the bank's liquidity is assessed as positive.
"The long-term issuer default rating and the rating of senior debt can be raised to BB + in the case if the government provides funding in accordance with the announced plan of capitalization, if the sovereign credit profile of the country and its ability to support not suffer as a result of lower oil prices, as well as, if the asset quality and solvency of the IBA is not significantly reduced because of the potential negative impact on the economy of falling oil prices," says the agency.
IBA was founded in 1992 and is the largest bank in Azerbaijan. Currently, 50.2% stake in the bank is owned by the state, and 49.8% - by private shareholders. --17D-
Economics
-
The Azerbaijan-Pakistan Business Forum, held in Baku, showcased the growing economic ties between the two nations, as officials and business leaders discussed enhancing cooperation across key sectors. Ambassador of Pakistan to Azerbaijan, Gasim Mohiuddin, emphasized the long-standing, fraternal relations between the countries, underscoring a shared vision of progress and prosperity.
-
Azerbaijan and Brazil have signed a Memorandum of Understanding (MoU) in the agricultural sector, aimed at stimulating the growth of investments and mutual trade, announced Azerbaijan’s Minister of Agriculture Majnun Mammadov on social networks.
-
The Asian Development Bank (ADB) has approved a loan of USD 131.5 million to enhance a crucial segment of the North–South Corridor in Azerbaijan, aiming to bolster regional connectivity and strengthen Azerbaijan’s strategic position as a key transport hub between Europe and Asia. The total cost of the project is estimated at USD 160.5 million, with the Government of Azerbaijan contributing USD 29 million.
-
The IV meeting of the heads of Energy Ministers from member states and observers of the Organization of Turkic States (OTS) concluded today with the signing of a joint communique aimed at bolstering cooperation in the energy sector. The agreement emphasizes key initiatives including the formation of an OTS Energy Coordinating Committee to streamline regional efforts on energy security and sustainable development.
Leave a review