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Moodyâ€™s affirms Unibankâ€™s B2 ratings

06 May 2011 12:50 (UTC +04:00)

BakÄ±. Elnur Huseynguluyev â€“ APA-Economics. The international agency Moodyâ€™s Investors Service has affirmed the B2 long-term foreign and local currency deposit ratings of Unibank. The E+ bank financial strength rating (BFSR) and Not-Prime short-term foreign currency deposit rating were affirmed.

The analysts of Moodyâ€™s believe that the current ratings of Unibank reflect its satisfactory liquidity and capitalisation. Moodyâ€™s also observes that Unibankâ€™s capitalisation is currently adequate, with Tier 1 and Total capital adequacy ratios of 12,3% and 16,9%, respectively, at 31 December 2010. The capital buffer is sufficient to absorb expected credit losses on the bankâ€™s loan book. The outlook on the ratings of Unibank is negative; Moodyâ€™s would need to observe a longer track record of profitable performance before changing the outlook back to stable.

â€˜The affirmation of the current ratings confirms the productivity of the improved risk management system as well as the balancing of assets and liabilities by maturities, coupled with the overall increase in the efficiency of our work,â€™ comments Faig Huseynov, Chairman of the Management Board of Unibank CB. â€˜The growth of the loan portfolio of the Bank will ensure strong financial performance in 2011... The quality of the loan portfolio of the Bank will be much higher than the external analysts have forecast.â€™
Moodyâ€™s last rating action on Unibank was on 19 November 2008.