Fitch upgrades Kapital Bank’s ratings

Fitch upgrades Kapital Bank’s ratings
# 29 September 2015 09:03 (UTC +04:00)

Baku. Yegane Lachinzade - APA-Economics. Fitch Ratings has upgraded Kapital Bank's long-term issuer default ratings to 'BB-' from 'B+', said the message posted on the website of the agency.

Bank told APA-Economics that the agency upgraded bank’s viability rating to “b+” from “b-”.

Moreover, Fitch Rating affirmed Kapital Bank’s foreign currency long-term rating at “BB-”, foreign currency short-term rating at “B” and support rating at “3”.

The upgrade of the bank’s long-term issuer default ratings to 'BB-' from 'B+' has been driven by upgrades of the banks' support ratings and upward revisions of their support rating floors, and reflect a reassessment of the potential support available to the banks from the Azerbaijan authorities, in case of need.

Kapital Bank, which is owned by Pasha Holding, at the end of the first half of 2015 had combined market shares of 14.1 percent in deposits and 8.8 percent of loans.

Kapital Bank remains well-capitalised, and the total regulatory capital adequacy ratio stood at 19.2 percent at the end of the first half of 2015.

Kapital Bank's retail loan book has performed reasonably well to date, liquidity position is healthy, supported by the absence of material non-government wholesale borrowings and decent deposit collection capacity.

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