Fitch Ratings upgrades Azerbaijani Bank Technique's ratings
Baku, Azerbaijan, Dec. 20
By Emin Aliyev - Trend:
Fitch Ratings has upgraded the Long-term Issuer Default Rating (IDR) of Bank Technique's (BT) to 'B-' from 'CC', Stable Outlook, Fitch Ratings reported today.
"The upgrade of these ratings reflects considerable progress in work-outs of impaired loans, resulting in significant improvement in the capital position, and currently comfortable liquidity," Fitch Ratings reported. "However, the ratings still reflect weak asset quality and tightly managed capital."
However, BT's capital will still be insufficient to absorb all problems remained after the previous management.
"BT's non-performing loans (NPLs) net of reserves amounted to AZN67m," Fitch Ratings reported. "Management expects further NPL work outs of AZN60m by end-2014. About half of the planned recoveries relate to the largest group of interconnected problem exposures, where Fitch views recovery prospects as reasonable, given healthy collateral quality and management's track record to date."
Short-term IDR: upgraded to 'B'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'