Chairman of Kapital Bank Board: Investment Rating of State-Run Kapital Bank to Expand Its Capabilities
The management of the state-run Kapital Bank is satisfied with the rating, provided to the Bank by the International Rating Agency Moody's Investors Service, Trend reports. Rauf Rzayev, Chairman of the Executive Board of the Bank, said in the briefing on December 19 that Kapital Bank had been conferred with the investment rating (at the level of Baa2) for deposits to the national currency. According to the assessment of the Agency, the Bank is referred as the group of the first-class banks and it was conferred with the rating at the level of BaP, which is lower by one stage, but is maximal for Azerbaijan financial sector. Indeed, the International Bank of Azerbaijan also received such rating of Moody's.
According to the position of free convertible currency, the long-term rating of Kapital Bank was defined in the group of speculative ratings at the level of Ba2, which is lower by one stage than previous. Our Bank has ambitious plans and intentions to up-level the investment rating on this above-mentioned position, Mr. Rzayev said.
The rating of the risk of financial stability was announced at the level of E+, like that one of IBA. The forecast on changing the rating is stable.
According to the Head of the Bank, the availability of the rating will allow Kapital Bank to carry out borrowings both in the local and the foreign capital markets at lower interest rates. At the same time, the Bank has plans on issuing bonds both in the form of national and foreign currency.
The message spread by the Agency says that the rating E+ is supported with increasing domestic possibilities, the Bank presence in all the regions of the Country, good yield, and the potential of growth at the rapidly-developing and expanding domestic banking market. The focus of the bank is aimed at expanding the retail business which is a positive factor of the assessment as well, since the Agency believes that the banking sector of the country is not developed enough, and may offer good possibilities needed for a viable growth that excel that one of Fitch Ratings, however restricted by the size of Kapital Bank, its low market shares, and week capitalization.
Kapital Bank informed about the assets at $109 mln., and the capital at $18,4 mln. in accordance with the International Financial Accounting Standards to December 31, 2005.