Baku, Azerbaijan, March 10
By Anvar Mammadov - Trend:
The international ratings agency Fitch Ratings has affirmed Pasha Bank's Long-term Issuer Default Rating (IDR) at 'BB-', according to the message of the agency published March 10 on its website.
The agency has also affirmed the bank's short-term foreign-currency IDR at 'B'.
Viability rating of the bank has been affirmed at 'b+', support rating at '3', support rating floor at 'BB-'.
The affirmation of the Pasha Bank's ratings is underpinned by the potential support available to the bank from the Azerbaijan authorities, in case of need, according to the message.
Fitch's view on support takes into account the combined market shares of Pasha Bank and its sister Kapital Bank in considering systemic importance, as they are part of a single group.
Pasha Bank and Kapital Bank, which are both owned by Pasha Holding, at the end of the first half of 2015 had combined market shares of 14.1 percent in deposits (Kapital Bank has 6 percent; Pasha Bank has 8.1 percent) and 8.8 percent of loans (5.6 percent at Kapital Bank, 3.2 percent at Pasha Bank), making them comfortably the second-largest banking group in Azerbaijan after IBA, according to Fitch.
In Fitch's view, any sovereign support would likely be available to both of the banks, in case of need, rather than one of the institutions in isolation.
Pasha Bank and Kapital Bank themselves haven't recently needed support of the government, according to the agency.