Moody’s upgrades outlook for Bank Technique

Moody’s upgrades outlook for Bank Technique
# 18 December 2013 08:55 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. International rating agency Moody’s Investors Service has revised its outlook on the long-term deposit rating in national and foreign currencies of Bank Technique, increasing it up to "stable", Azerbaijan Business Center reported.

According to the Bank, Moody’s also affirmed the rating at Caa2.

Agency’s experts say that the improved outlook reflects the Bank’s financial stabilization and add that the financial institution has made significant progress in restoring troubled loans and its capital base. Moody’s stresses the increase in capital over the past year and a half and expects its exceeding the law-fixed minimum by 12% by year-end.

The index of the first-level capital improved up to 9% compared with 1.7% at the end of 2011, which was made possible as a result of capital growth, recovery of reserves for possible losses and risk reduction.

In addition, according to analysts of Moody’s, for 18 months the Bank was able to strengthen its liquidity. Thus, the Bank maintains sufficient level of liquid assets - about 20% of the total volume. The Bank has also increased the deposit portfolio by 19% that makes up 58% of total liabilities.

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