Finance

Home page

Finance

Fitch: AccessBank would receive support from shareholders

07 September 2016 09:13 (UTC +04:00)

Baku - APA-Economics. Fitch Ratings has affirmed Azerbaijan-based Accessbank's (AB) Long-Term Issuer-Default Ratings (IDRs) at 'BB+'.

According to the agency, the Outlook on the bank is Negative. The agency has also downgraded AB's Viability Rating (VR) to 'b+' from 'bb-'.

AB's Long-Term IDR of 'BB+' and Support Rating of '3' reflect the moderate probability that the bank would receive support from the bank's international financial institution (IFI) shareholders. The European Bank for Reconstruction and Development (AAA/Stable), KfW (AAA/Stable), International Finance Corporation and the Black Sea Trade and Development Bank each hold a direct 20% stake in AB.

The downgrade of AB's VR to 'b+' from 'bb-' reflects significant deterioration in the bank's asset quality and performance following the devaluations of the Azerbaijan manat in 2015. Significant asset quality deterioration is due to its higher share of foreign currency-denominated loans.

However, stabilisation of economic performance and of the bank’s asset quality metrics would reduce downward pressure on their VR.

The Negative Outlook on the bank reflects that on the sovereign.