Fitch downgraded International Bank of Azerbaijan's rating to Restricted Default’

Baku. 25 May. REPORT.AZ/ Fitch Ratings has downgraded International Bank of Azerbaijan's (IBA) Long-Term Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'CCC' and removed it from Rating Watch Evolving (RWE).

Report informs citing the Fitch The downgrade of IBA's IDRs to 'RD' follows the announcement of the bank's restructuring plan, presented on 23 May 2017. The proposed restructuring will represent a distressed debt exchange (DDE) according to Fitch's criteria as it will impose a material reduction in terms on certain senior, third-party creditors through a combination of write-downs, tenor extensions and interest rate reductions.
IBA expects to complete the restructuring following a creditors' meeting in July 2017. However, Fitch has downgraded the ratings to 'RD' now as the bank ceased servicing the obligations, subject to the restructuring, on 10 May 2017, and this period of non-servicing will continue until the restructuring is complete. The restructuring will affect USD 2.2 billion of senior, third-party non-government foreign-currency creditors, but will not apply to deposits or to non-deposit local currency obligations.