The international ratings agency Fitch Agency has downgraded Azerbaijani AccessBank’s Long-Term Issuer Default Rating (IDR) to “BB-” from “BB+”, says the agency’s report.
At the same time, the agency has affirmed the bank’s Viability Rating (VR) at “f”.
According to Fitch experts, the bank’s shareholders provided $20 million of equity in March and were committed to inject a further $12 million by the end of September to make the bank’s total capital above the regulatory minimum of 50 million manats.
“Fitch has maintained the bank’s Long-Term IDR in the “BB” category and affirmed the Support Rating at “3”, reflecting the agency’s view that there is still a moderate probability of support for the bank. This view is based on the IFIs’ strategic commitment to microfinance lending in emerging markets, the IFIs’ direct ownership of AccessBank, stemming from their participation as founding shareholders, and the fact that capital contributions have been made in 2017 and may be considered again in 2018, depending on the bank’s capital position,” says the report.
The Stable Outlook reflects Fitch’s view that the capital support provided by the IFI shareholders is likely to be eventually sufficient to restore the bank’s capital position and enable it to continue fulfilling its obligations to creditors, according to the report.
AccessBank was founded in 2002 by the Black Sea Trade and Development Bank, EBRD, IFC, KfW, a German consulting company LFS Financial Systems and AccessHolding. Being one of the leading banks of Azerbaijan, AccessBank offers a full range of banking services. (Trend/Business World Magazine)