Baku, Azerbaijan, May 29
By Azad Hasanli - Trend:
Moody's Investors Service has upgraded Kapital bank's long-term local and foreign-currency deposit ratings to Ba3 from B1, said the agency May 29.
"This action follows Moody's new methodology for rating banks globally, the bank's strengthened financial fundamentals; and the improvement in the macro profile to "Weak" from "Weak-" for Azerbaijan (Baa3 stable)," said the message.
The analysts said that in order to support the bank's business growth, its shareholders provided 70 million manats capital injection in the first half of 2014 (an 88 percent increase in authorized capital) and 30 million manats in 2013 (an 60 percent capital increase). "This boosted the bank's total capital adequacy ratio (CAR) to 27.8 percent as of year-end 2014 from 19.64 percent," said the message. "Moody's does not expect the CAR to decline below 17 percent."
Moody's also notes that problem-loan write-offs, as well as loan book growth and problem-loan recoveries have allowed the bank to reduce its nonperforming loans ratio (loans 90+ days overdue) to 7.7 percent from 15.9 percent, according to bank's management data.
It should be noted that Kapital Bank has the widest net of branches and divisions in Azerbaijan. In total there are 89 branches and 7 divisions that are serving to its clients. More detailed information about the bank and its products is available on www.kapitalbank.az and 196 Customer Care Number or by visiting social media pages of the Bank.
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