Moody’s increases outlook on Azerbaijani bank’s long term rating
Azerbaijan, Baku, Nov. 11 / Trend /
The international agency Moody's Investors Service has increased the outlook on the ratings of Unibank OJSC to stable also affirming the long-term deposit rating at B2 and setting BFSR at E+.
The changes by Moody's are based on the interim unaudited financial statements of Unibank for 2011 and the audited financial statements for 2010 made in accordance with the IFRS in both cases. The analysts of Moody's believe that the change of the outlook to stable is brought about by the sustained trend of improving profitability of Unibank this year. In addition, the agency points at the stabilised quality of the assets of the Bank and the 27% growth of its loan portfolio. Moody's noted also that any possible upgrade of Unibank's ratings will be contingent on the Bank's ability to strengthen its franchise while also demonstrating a sustained track record of improvement in financial fundamentals.
'The rating outlook upgrade is the objective evaluation of the growth in lending activity, expansion of the deposit base and high liquidity of the Bank,' comments Faig Huseynov, Chairman of the Board of Unibank OJSC. According to Mr Huseynov, the considerable loan portfolio and profit growths observable this year will be continued and will ensure that the Bank wins higher ratings from the international agencies.
It should be remembered that Moody's Investor Service last rating action on Unibank OJSC was in November 2008. It is equally noteworthy that the assets, the loan portfolio and the profits of the Bank equalled 446 mln manat, 332.5 mln manat and 5.3 mln manat respectively on 31 October this year.
11 individuals (76.52%), EBRD (15.15%) and the German investment company DEG (8.33%) are the shareholders of Unibank. Reaching out via its 24 branches and outlets the Bank serves more than 170,000 customers in Baku, Sumgait and six other key regions of Azerbaijan.
The official exchange rate is 0,7866 manat to $1.