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Fitch Ratings: Azerdemiryolbank capable of repaying outstanding wholesale funding obligations in the near-term

22 April 2009 13:52 (UTC +04:00)

Baku. Vugar Israfilov â€“ APA-Economics. Fitch Ratings has affirmed Azerdemiryolbankâ€™s long-term IDR at ’B-’ (B minus), Outlook â€œStableâ€, Short-term IDR at ’B’, Individual Rating at ’D/E’ Support Rating at ’5’ and Support Rating Floor at ’No Floorâ€™.

Fitch said the affirmation of Azerdemiryolbank’s ratings takes into account the moderate reported loan impairment to date, although restructured loans are significant, relatively stable funding from IFIs and an adequate accumulated liquidity cushion. The latter should enable the bank to repay outstanding wholesale funding obligations in the near-term, should they not be rolled-over. Fitch notes that Azerdemiryolbank’s loan portfolio, like those of its peers, is now seasoning in a more challenging environment after a period of very rapid growth, and a marked deterioration in asset quality could lead to negative rating action.