Baku, Azerbaijan, May 3
By Anvar Mammadov - Trend:
Moody’s Investors Service, the international ratings agency, has decided to withdraw the ratings of IBA-Moscow, the Russian subsidiary of the International Bank of Azerbaijan (IBA), for its own business reasons, the agency said in a report May 3.
At the time of the withdrawal, the subsidiary’s long-term local- and foreign-currency deposit rating was affirmed at B3, short-term local and foreign-currency deposit rating at Not Prime, long-term Counterparty Risk Assessment at B2 (cr), short-term Counterparty Risk Assessment at Not Prime (cr), baseline credit assessment (BCA) and adjusted BCA at b3.
All the bank's long-term ratings carried a stable outlook.
In March this year, the IBA shareholders decided to close the bank’s subsidiaries in Russia and Georgia, which is connected with the preparation for the sale of the bank’s state-owned shares.
In connection with the decision to liquidate the IBA subsidiary in Russia, its branches in Yekaterinburg and St. Petersburg were closed.
The IBA has been operating since 1992. The bank has been at the stage of recovery since July 2015, which is related to preparations for privatization of the bank's state-owned shares.
To restore the bank's financial position, the distressed assets of the bank were transferred to the state-owned Aqrarkredit non-bank credit organization. Aqrarkredit provides IBA with liquid assets in exchange for distressed assets.
Restructuring of IBA’s foreign liabilities has been recently completed.