Fitch Affirms Kapital Bank ratings
Azerbaijan, Baku, May 27 / Trend /
International rating agency Fitch Ratings affirmed the ratings of the Azerbaijani bank Kapital Bank.
Long-term foreign currency IDR affirmed at 'B+; Outlook Stable Short-term foreign currency IDR affirmed at 'B', Individual Rating affirmed at 'D/E' ,Support Rating affirmed at '4'
Support Rating Floor affirmed at 'B+'.
"The affirmation of Kapital Bank's ratings reflects Fitch's view of the moderate probability of support being available from the authorities in case of need, considering the bank's important role in distributing pensions and other social payments through the largest branch network in the country," said in the report of the Agency.
At the same time, Fitch also notes significant uncertainty in respect to the provision of such support given the recent privatisation of the bank and its moderate market shares, and the sovereign upgrade has therefore not led to a change in the bank's ratings.
At end-Q110, Kapital was the fourth-largest bank in the domestic banking sector with a 4% market share of assets and 6% of retail deposits
Kapital is 97.5%-owned by the Pashaev family, which includes Arif Pashaev, the father of the wife of President Aliyev.