Azerbaijan, Baku, June 6 / Trend , N.Ismayilova/
Fitch Ratings has today affirmed Kapital Bank's (Kapital) ratings at Long-term Issuer Default (IDR) 'B+' with Stable Outlook, Short-term IDR 'B' and Individual 'D/E'. A full list of rating actions is provided at the end of this commentary.
Fitch believes Kapital will continue to be systemically important. Kapital distributes pensions and other social payments through its large nation-wide network and services state entities and regional treasury accounts countrywide. Those functions are underpinned by the bank's, thus far, unmatched network in the country, especially in regions, comprising 88 branches/sub-branches, some 90 other outlets and 300 ATMs.
The Individual Rating reflects the bank's limited banking franchise and short track record, and also considers risks stemming from worsening asset quality, which has yet to be tested though an economic cycle. The bank's capital position, profitability and liquidity are, however, adequate at present.
Kapital was the third-largest bank in Azerbaijan by asset and retail deposits at end-2008 with market shares of 5.6% and 8.6%, respectively.
The rating actions are as follows:
Kapital BankLong-term foreign currency IDR: affirmed at 'B+; Outlook StableShort-term foreign currency IDR: affirmed at 'BIndividual Rating: affirmed at 'D/E'Support Rating: affirmed at '4'Support Rating Floor: affirmed at 'B+'