Fitch Ratings has affirmed Open Joint-Stock Company International Bank of Azerbaijan's (IBA) Long-Term Issuer-Default Rating at 'B-' with a Stable Outlook, the agency reported.
The agency has also resolved the Rating Watch Evolving (RWE) on IBA's Viability Rating (VR) and upgraded the VR to 'b-' from 'ccc'.
The upgrade of IBA's VR reflects improved profitability and reduced pressure on capitalisation stemming from a large short foreign currency position. The VR is also supported by IBA's currently low-risk asset structure and comfortable liquidity position after a restructuring in 2017.
According to Fitch Ratings, IBA reported regulatory Tier 1 and Total Capital ratios at end-1Q18 of 19.2% and 20.5% respectively, broadly in line with Fitch's expectations after the bank completed its restructuring in September 2017.
IBA's liquidity position is comfortable with liquid assets (mainly, cash and cash equivalents and placements with CBA and foreign banks) more than fully covering customer accounts.
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