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S&P downgrades Muganbankâ€™s rating to CCC+/C

21 June 2017 15:18 (UTC +04:00)

Standard & Poor’s (S&P) downgraded Muganbank’s credit rating from B-/B to CCC+/C. The outlook is negative.

The downgrade includes crediting ability of the bank, the agency said.

The analysts of the agency say that unfavourable operation condition in Azerbaijan negatively influenced Muganbank’s liquidity and capitalization.

S&P noted that the bank faced strong deposit flow in 2016. So, if we take into account the correction of manat rate, bank’s deposit portfolio declined 30%: “Consequently, bank’s liquidity faced pressure. Highly liquid assets decreased 77% to AZN 14.5 million. Deposit flow slowed in 2017. However, bank’s liquidity reserves are not at the minimum level and this increases the risks”.