International rating agency Fitch Ratings has revised the ratings of the International Bank of Azerbaijan. The agency upgraded the Bank's long-term issuer default rating (IDR) to B by one notch. The agency also upgraded the Bank's rating outlook from Stable to Positive.
The changes in the rankings are explained by a number of factors. According to the agency, the stable structure and quality of the assets of the International Bank of Azerbaijan, its high profitability in recent years has formed a strong capital and liquidity buffer in the Bank. The quality of the bank's assets is satisfactory. The bank's risks associated with short open currency positions have also been reduced.
The strong capital position of the International Bank of Azerbaijan reduces currency risks on the credit profile and is quite resilient to any serious currency crises. The bank's capital adequacy ratio is around 30%, significantly exceeding regulatory requirements.
It should be noted that in mid-April, Moody's International Rating Agency also revised the ratings of the International Bank of Azerbaijan from Stable to Positive. The bank also raised its creditworthiness rating by one notch from b3 to b2.
