Azerbaijan, Baku, June 1 / Trend /
The Moody's international rating agency reduced a rating of the International Bank of Azerbaijan (IBA) by one point and this fact does not affect the ability to attract funds from the world markets in normal conditions and to conduct further successful operations, Deputy Chairman of the Bank Vagif Akbarov said.
"At present, the bank has a satisfactory liquidity position, sufficient to cover all current liabilities, as well as to adequately continue loaning enterprises and individuals," Akbarov said. "Reducing the same rating at one point, I'm sure, will not affect the bank's opportunity to draw the funds on world markets at normal conditions and to conduct further successful operations."
Earlier, Moody's reported on a possible revision of the bank's rating on deposits in the national currency of Baa2 and subordinated debt of Baa3 with a probability of decreasing by one level.
"This is due primarily to changes in Moody's methodology for determining the level of systemic support for banks, whose ratings are higher than the sovereign rating of countries where these banks are," Akbarov said.
He said the change of methodology is connected with the crisis, recently observed in the global economy and in this regard, well-known criticism of the rating agencies.
The IBA's rating is higher than the country by two levels. The IBA's deposit rating in the foreign currency Ba2 equals with Azerbaijan's sovereign rating and deposit rating in national currency Ваа2 is higher than the country's same rating (Ba1/positive) by two levels. Thus, after a potential downward, the IBA's rating will still be higher than the country's rating, but only by one level.
Re-assessment will concern 1,100 banking groups from 80 countries. Under the initial assessment, 10-15 percent of banks from 50 countries will be subjected to lower ratings. These changes will affect mainly the banks whose ratings are quite different from the country's rating. Thus, the IBA whose rating is higher by two levels than the sovereign could also be included among those banks that may be covered by new methodological principles for establishing the rating.