Azerbaijan, Baku, July 21 /Trend A.Akhundov/
Ratings Services Standard & Poor's may take positive rating actions in respect of Azerbaijan MuganBank if it significantly improves its business position, for example through a larger franchise and decreased loan concentration, the rating agency said.
Standard & Poor's raised its long-term credit rating of MuganBank to "B-" from "CCC +", while a short-term rating of "C" was confirmed on May 14. The outlook was rated as "stable," which reflects the expectation that the bank's business and financial profile will remain relatively unchanged over the next 12 months.
The ratings can be downgraded if asset quality deteriorates sharply and drives capitalization downward to the point where our risk-adjusted capital (RAC) ratio before adjustments would be lower than 5%. Another reason for downgrading may be significant funding profile deterioration, leading to depressed liquidity and loss of confidence among depositors.
MuganBank has been operating since 1992. It has 30 branches and 2 offices in the country.
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