Azerbaijan, Baku, July 5 / Trend /
Fitch Ratings has assigned JSC Bank of Georgia's (BoG) senior fixed rate note issue a final rating of 'BB-', the agency's press release says on Thursday.
This follows the receipt of documents conforming materially to information already received, on the basis of which Fitch assigned a 'BB-(exp)' Expected rating on 16th May 2012.
The USD250m five-year 7.750pc senior unsecured eurobonds have been issued directly by BoG and listed in the UK.
Covenants in the terms and conditions include a negative pledge in respect of the subordination of holders of the bonds to 'new' creditors, as well as clauses relating, among other things, to: business continuity; mergers; the disposal of assets; changes of business; transactions with affiliates; the payment of taxes; dividend payments; indebtedness; and compliance with National Bank of Georgia (NBG) prudential supervision ratios. In addition, BoG is required to maintain Basel I Tier 1 and total capital ratios of 8% and 12%, respectively.
The ratings of the senior notes are driven by BoG's Long-term Issuer Default Rating (IDR) of 'BB-'/Stable.
BoG is the largest bank in Georgia with market shares of between 35% and 37% of total assets, loans and deposits as at end-2011, according to NBG data. The bank's strategic businesses include retail and corporate banking and wealth management. In addition, BoG Group provides insurance and healthcare, affordable housing and brokerage services throughout Georgia. In February 2012 Bank of Georgia Holdings plc, the 98.35% owner of BoG, listed on the London Stock Exchange.