Azerbaijan, Baku, Nov. 27 / Trend N.Ismayilova /
Fitch Ratings upgraded the long-term ratings in foreign and local currency of the Azerbaijan Mortgage Fund (AMF) acting under the Central Bank of Azerbaijan (CBA) from the level of "BB" to "BBB- with "stable" outlook, the AMF reported on Saturday. The rating was upgraded as the result of the May increase of Azerbaijan's sovereign rating to 'BBB-'.
Azerbaijan's long-term Issuer Default Rating (IDR) in foreign and local currency upgraded from 'BB' to "BBB- with "stable" outlook.
"AMF's receipt of this rating corresponding to Azerbaijan's rating, first confirms the strong financial position of the fund, healthy loan portfolio, higher pay and its significant role in the implementation of public policies to improve housing conditions," the AMF reprted.
The receipt of a new credit rating reflects the continued support of the state, forming a perfect system of the asset-liability management and risk management of the fund, and creating an effective reporting system.
This international credit rating in the future will further enhance the fund's ability to borrow, as well as provide a basis for AMF's entrance to the international capital market and placing the Fund's debt securities at competitive interest on it. This, in turn, will create good conditions for the duration of the mortgage loans in the country, its uninterrupted and even greater expansion.
To date, the AMF issued 6,000 loans totaling 240 million manat through agent banks.
AMF was established as a PSE in September 2005 by the Azerbaijan President's decree. Its charter was approved by a separate presidential decree in December 2005. AMF's main purpose is to create funding mechanisms which provide home ownership to Azerbaijani citizens, through long-term financing, and to attract domestic and foreign investment into mortgage financing.