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Fitch Ratings: UniBankâ€™s liquidity position will be worse this year

22 April 2009 10:49 (UTC +04:00)

Baku. Vugar Israfilov â€“ APA-Economics. Fitch Ratings has affirmed Azerbaijan-based Unibankâ€™s term IDR at ’B-’ (B minus); Outlook Stable, Short-term IDR at ’B’, Individual Rating downgraded to ’E’ from ’D/E’, Support Rating at ’5’ and Support Rating Floor at ’No Floor.

The affirmation of UniBank’s Long-term IDR with a Stable Outlook is based on Fitch’s understanding that the National Bank of Azerbaijan (NBA) and international financial institutions (IFIs) will provide considerable liquidity and capital support to the bank in Q209. Should the bank not receive this support to the extent currently anticipated, negative rating action is likely to be taken on the bank’s IDR.

Fitch has meanwhile downgraded the bank’s Individual Rating to ’E’ from ’D/E’ in light of the continuing rapid deterioration of its asset quality and its vulnerable liquidity position.

The latter has come under heightened pressure as a result of substantial deposit outflow in Q109, and the large volumes of wholesale borrowings which are maturing in Q209. An Individual Rating reflects a bank’s stand-alone credit strength and does not take account of the potential for external support.