Ratings Services Standard & Poor's has assigned a long-term and short-term counterparty credit ratings to 'BB-/ B' Azerbaijan's PASHA Bank. Forecast - "stable".
PASHA Bank ratings reflect the underlying rating level commercial bank operating only in Azerbaijan, - "bb-", as well as adequate, in our view, the bank's business position, strong capitalization and profitability, moderate stance on risk indicators at the level of funding below average and adequate liquidity (as defined in the criteria.) Evaluation of the bank's own credit (stand-alone credit profile - SACP) - "b +".
PASHA Bank's credit rating by one notch above its SACP, which reflects the agency's opinion to the value of the bank to the banking system and to assess how the Government of Azerbaijan is ready to support the banking sector. Given the ownership structure of PASHA Bank, the rapid growth in market share of the bank and its important role in serving the needs of large enterprise customers, S & P believes that the loss of confidence in the PASHA Bank, likely to lead to a loss of confidence in the banking system of Azerbaijan and necessitate emergency support the state.
"Stable" outlook reflects the expectation that PASHA Bank will rapidly increase its market share and loan portfolio in the next two years - at least 30% a year, while maintaining strong capitalization and adequate liquidity reserves.
A positive rating action against the bank now seems unlikely. However, the ratings or outlook could be raised in the case of a significant increase in the diversification of the resource base of the bank, reducing the concentration on individual contributors and the reduction of funding received from related parties, we believe the main factors that limit the ratings of the bank.
Ratings or outlook could be changed for the worse, if fast loan growth will lead to a significant deterioration of capital ratios PASHA Bank and led to a decline in the RAC before adjustments for diversification to less than 10%. Significant deterioration in asset quality amid increasing maturity of the loan portfolio may also put pressure on the ratings. -15D -
Economics
-
On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
-
Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
-
Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
-
Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
Leave a review