Fitch Ratings assigns AMF int'l rating
Azerbaijan, Baku, Oct. 27. / Trend N. Ismayilova /
Fitch Ratings has assigned Azerbaijan Mortgage Fund under the Central Bank of Azerbaijan ("AMF") Long-term foreign and local currency ratings of 'BB' respectively. The Outlooks on the ratings are Stable, the agency reported.
AMF's ratings are notched down from Azerbaijan's Long-term local currency rating ('BB+'/ Outlook Stable) to reflect its public-sector (PSE) status, sovereign control through the central bank, and the important role that AMF fulfils in the national government's housing finance policy. The notching further captures Fitch's view on the currently available support mechanisms for the entity.
Any change in Azerbaijan's sovereign rating, and/or AMF's legal status and control would automatically be reflected through a change in AMF's rating and/or rating Outlook.
"AMF has no share capital and its reserves primarily consist of retained earnings from state budget allocations," the agency reported.
AMF's total own sources from state budget appropriated funds reached 72.4m manat as of August 2009.
Following its establishment in 2006, AMF's long-term residential mortgage portfolio grew quickly to 59.6m manat by end-2008, and had risen to 81.4m manat as of August 2009.
According to the agency, AMF started to borrow from capital markets in 2009 and its financial debt, through the issuance of covered bonds, is projected to reach 55m manat at end- 2009. The expected growth in AMF's business indicates that its funding requirements may total 150m manat during 2009-2010.
On Oct. 27, the official exchange rate is 0.8032 manat to $1.
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