Baku. 26 January. REPORT.AZ/ Moody's Investors Service today upgraded the long-term foreign- and local-currency deposit ratings of International Bank of Azerbaijan (IBA) to B3 from Caa1.
Report informs, Moody's Investors Service stated.
BA's baseline credit assessment (BCA) was upgraded to caa2 from caa3 and the long-term counterparty risk assessment (CRA) to B2(cr) from B3(cr).
The service also declares that the positive outlook on IBA's long-term deposit ratings reflects Moody's expectations of a further improvement in the bank's business and financial profiles if it reduces its foreign-currency risk and resumes business growth with prudent risk appetite.The rating action reflects the completion of IBA's restructuring, with capital adequacy restored to a level above minimum regulatory requirements, an improved loan book quality following the finalization of the sale of bad assets, and an improved funding structure providing reduced funding costs.
At the same time, the bank's ratings remain constrained by a still large open foreign-currency position and uncertainty regarding bank's future development amid currently challenging economic conditions in Azerbaijan.