Fitch Lowers Rating of Int’l Bank of Azerbaijan to ‘Limited Default’

International rating agency Fitch Ratings has downgraded the long-term issuer default rating (IDR) in foreign currency of the International Bank of Azerbaijan to “RD” (limited default), the agency said.

International rating agency Fitch Ratings has downgraded the long-term issuer default rating (IDR) in foreign currency of the International Bank of Azerbaijan to “RD” (limited default), the agency said.

In addition, the agency removed the International Bank of Azerbaijan from the list for revision (RWE).

The short-term foreign currency IDR has also been downgraded to “RD”.

The agency maintained the bank’s stability rating at the “F” level. “Fitch Ratings” confirmed the bank’s support rating at “5”.

The agency reports that the rating downgrade will continue until the restructuring is completed.

It should be noted that on Wednesday, before the announcement of the agency’s decision, Abbas Ibrahimov, First Deputy Chairman of the Interbank Board, warned that taking into account the experience of other foreign banks that had gone through the same process, we can expect that in the near future, International Bank of Azerbaijan ratings may be lowered.

According to him, however, this will not mean that the situation in the bank has worsened and will be temporary.

“These are the traditional rules applied by international rating agencies in such cases. The ratings of the bank at the restructuring stage are temporarily decreasing and after the completion of the process the rating is will be raised again”, he said.

On May 15, responding to the plans of the International Bank of Azerbaijan Debt Restructuring Agency, international rating agencies Moodys and Fitch Ratings lowered the bank’s rating.

The total amount of debt of the International Bank of Azerbaijan is $3.3 billion.

Ana səhifəNewsFitch Lowers Rating of Int’l Bank of Azerbaijan to ‘Limited Default’