Moody's International Rating Agency revised the ratings of "Bank of Baku" OJSC. The agency has raised the Baseline Credit Assessments (BCA) and long-term deposit ratings of "Bank of Baku" OJSC.

The BCA rating of "Bank of Baku" OJSC has been upgraded from b2 to b1. The bank's long-term deposit rating in local and foreign currency has increased from B1 to Ba3. The upgrade of the bank's credit solvency baseline from b3 to b2 reflects its asset quality and solid capital buffers.

Increasing the rating of long-term bank deposits in local and foreign currency to B2 reflects the improvement of the bank's creditworthiness. The bank's deposit ratings do not benefit from government support and therefore the deposit ratings are at the same level as the bank's BCA indicator b2.

Bank of Baku's NPL ratio fell from 8.1% in 2020 to 3.3% in December 2021. According to the agency, a positive aspect is that the Bank of Baku's loans is mainly denominated in local currency, which limits its vulnerability to exchange rate fluctuations.

Moody's agency noted that the "Bank of Baku" OJSC has strong capital, which can provide a sufficient "cushion" in case of credit losses.