Moody's downgrades Bank Techique's credit raitings

Baku. 24 July. REPORT.AZ/ Moody's Investors Service has today downgraded Bank Technique OJSC's long-term local- and foreign-currency deposit ratings to Caa2 from Caa1 and its baseline credit assessment (BCA) to caa3 from caa2, reflecting the lack of capital support following the weakening of the bank's capital cushion due to a one-off foreign-currency revaluation loss in February. The outlook on the long-term deposit ratings is negative.

At the same time, Moody's affirmed the Not-Prime short-term local and foreign-currency deposit ratings. These actions conclude the review on the bank's ratings initiated on 06 May 2015, when Bank Technique's ratings were placed on review for downgrade.

The downgrade of Bank Technique's long-term deposit ratings to Caa2 reflects the lack of capital support to compensate for the sudden erosion of its capital cushion following the one-off foreign-currency revaluation loss of around 25 million AZN in February 2015.