Fitch affirms Ziraat Bank Azerbaijan’s shareholder at 'BBB-' with Negative Outlook

Fitch affirms Ziraat Bank Azerbaijan’s shareholder at 'BBB-' with Negative Outlook
  • Clock-gray 09:03
  • calendar-gray 13 October 2016

Baku - APA-Economics. Fitch Ratings has affirmed T.C. Ziraat Bankasi A.S.'s Long-Term Issuer Default Ratings (IDRs) at 'BBB-' with Negative Outlooks.

 

Ziraat is the largest domestic bank, with market shares of 13%-14% in sector assets and deposits at end-1H16. The bank benefits from significant and stable state-related funding which, excluding budgetary funds, at end-1H16 equaled to 12% of total funding.

 

Asset quality at the bank is reasonable and is underpinned by low non-performing loan (NPL) ratios in subsidised agricultural and SME lending.

 

The Negative Outlook reflects the potential for both VRs and SRFs of the bank to be downgraded and revised downward respectively in case of a sovereign downgrade.

 

Central Bank of Azerbaijan granted licence to Ziraat Bank Azerbaijan OJSC on December 30, 2014. The bank has been in operation since 2015.The bank has three shareholders: T.C. Ziraat Bankasi A.S. (99.98 % of voting right), Ziraat Sigorta A. S. (0.01% of voting right) and Ziraat Yatırım Menkul Değerler A. S. (0.01% of voting right).

 

 

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