Fitch Ratings confirms Azerbaijani Pasha Bank's rating
Baku, Azerbaijan, Sept. 1
By Azad Hasanli – Trend:
Fitch Ratings has confirmed Azerbaijan-based Pasha Bank's (PB) Long-Term Issuer-Default Rating (IDR) at 'B+', the Outlook is Stable.
The rating positively assesses PB's systemic importance; solid consolidated capitalization, manageable asset quality and ample liquidity, Fitch Ratings said in a message.
According to the message, Fitch views PB's systemic importance as significant, as the bank is a part of the largest privately-owned banking group in the country, and together with its sister bank Kapital Bank holds around 27 percent of sector deposits.
PB's nonperforming loans (NPLs) slightly increased to around 13 percent of gross loans at end-1Q17 from around 11 percent at end-2016 while restructured loans slightly contracted to 7 percent from 8 percent.
“The share of PB's foreign currency loans remained significant at around 45 percent of the bank’s total loans,” the message said. “However, some of PB's largest borrowers may benefit from access to foreign currency revenue. Loan book concentration is high, with the 25 largest exposures amounting to around 69 percent of gross loans at end-1Q17.”
The rating actions are as follows: Long-Term IDR: affirmed at 'B+'; Outlook Stable;
Short-Term IDR: affirmed at 'B'; Viability Rating: affirmed at 'b+'; Support Rating: affirmed at '5'; Support Rating Floor: affirmed at 'No Floor'.
PASHA Bank, founded in 2007, is a leading corporate bank in Azerbaijan.