S&P lowered its long-term issuer credit rating on PASHA Bank

S&P lowered its long-term issuer credit rating on PASHA Bank
  • Clock-gray 10:57
  • calendar-gray 10 February 2020

Global Ratings today lowered its long-term issuer credit rating on Azerbaijan-based PASHA Bank to 'B+' from 'BB-', APA reports.

 The downgrade reflects our view that PASHA bank's credit profile has deteriorated over the past year due to sustained pressure on its capitalization, higher share of problem loans than we previously anticipated and comparatively low diversity of the customer base.

 The stable outlook reflects our view that the bank's solid market share in corporate lending in Azerbaijan, high liquidity buffer, and stable customer deposits will support its credit profile over the next 12-18 months despite lower capitalization.

 We could consider a positive rating action if the bank improves its asset quality and capital sustainability, coupled with better customer diversity.

Mirsaid İbrahimzade

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