S&P downgrades Mugan Bank's credit rating

S&P Global Ratings downgraded Azerbaijan-based Muganbank OJSC's credit rating to CCC+/C from B-/B.

The outlook on rating was revised to negative.

Mugan Bank's financial performances have been declining in recent times. For instance, the assets dropped 8.3% to AZN 605.7 million in the first quarter. This was caused by a decline of liabilities by 9.5% to AZN 519.5 million, and of deposit portfolio by 19% to AZN 271.1 million.

The bank ended 2019 at AZN 8.3 million, January-March 2020, at AZN 1.3 million in a loss.