Baku. Yegana Lachynzade- APA-Economics. International rating agency Fitch has again estimated the ratings of Azerbaijani banks of “AGBank” and “DemirBank”.
The agency lowered the rating of financial stability of the “AGBank” from "CCC" to "f". The agency attributed this to the inability of the bank to further activities. “AGBank” has lost stability and in urgent need of support.
Fitch has also expressed its attitude towards the consolidation of “AGBank” and “DemirBank”.
The Agency believes that, in the case of associations and providing financial support “AGBank” to consolidate the long-term issuer default rating could be raised above the level of "CCC". “Otherwise we will have to downgrade", - the report says.
Agency experts say the weakening of the positions and the deterioration of the quality of “DemirBank” as a result of devaluation of assets, as well as consider it risky to consolidate bank with “AGBank”. Combining with “AGBank” having undercapitalized, can negatively affect credit profile and rating of “DemirBank".
The managers of these banks told Fitch that the consolidation process can only happen as a result of the necessary financial support of shareholders and the Central Bank.
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