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Fitch rates International Bank of Azerbaijan's eurobond 'BB(EXP)'

29 May 2014 10:40 (UTC +04:00)

BakÄ± - APA-Economics. Fitch Ratings has assigned International Bank of Azerbaijan's (IBA) upcoming debut eurobond an expected Long-term 'BB(EXP)' rating.

The agency has also affirmed Russia-based bank IBA-Moscow's (IBAM), a 100% subsidiary of IBA, senior unsecured debt at 'BB' and assigned its two upcoming similar issues expected 'BB(EXP)' ratings.

IBA's obligations on the eurobond issue will rank equally with the claims of other senior unsecured creditors, except the claims of retail depositors. Under Azerbaijani law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-2013, retail deposits accounted for 28% of IBA's total liabilities. The eurobond issue will have a put option that can be exercised if the state (the current majority shareholder) ceases, at any time, to control directly or indirectly 50% plus one share of IBA. The final rating for the issue is contingent on the receipt of documents conforming materially to information already received.