International Bank of Azerbaijan Awarded Rating by Moody's

Business Materials 14 December 2006 18:45 (UTC +04:00)

The International Rating Agency Moody's awarded the International Bank of Azerbaijan (IBA) a rating at Ba2. Like a version by Fitch Ratings, it yields the country rating only by one point, Trend reports. The long term rating of IBA in the local currency was estimated as Baa2 and short-term - Prime-2 (P-2). The long-term rating in foreign currency was estimated to Ba2 and short term - Not Prime (NP). Financial Support Rating (FSR) was established at E+. The agency defined the stable forecast of changing the rating.

The rating of IBA on foreign currency is restricted by sovereign rating of Azerbaijan (Ba2/NP), whereas the rating in local currency was free from restrictions.

The rating of IBA reflects risk global non-payments and expectations of losses and is related to Agency confidence in the Azerbaijan financial authorities in the case of necessity.

The IBA is a biggest bank in the country with dominating market share in assets (48%), credits (45%) and physical entities (33%), and assumes special importance for the country payment balance.

As a result of the first half-year, IBA announced its assets in the level of $1.5bln and capital in $111.8mln in accordance with the international financial responsibility standards (IFRS).