Fitch Ratings has affirmed Turkey-based Pasha Yatirim Bankasi A.S.'s (PBTR) National Long-Term Rating at 'A(tur)'. The Outlook is Negative.
The National Rating is driven by potential support from PBTR's parent, Azerbaijan's Pasha Bank OJSC (PB, BB-/Negative), which owns 99.9% of PBTR's shares. PB's ratings, in turn, are underpinned by the moderate probability of support from the Azerbaijan authorities given, among other factors, the bank's moderate systemic importance as part of the largest privately-owned banking group in Azerbaijan.
PBTR's Negative Outlook mirrors that of PB, which in turn reflects that of the Azerbaijan sovereign.
PBTR is currently growing rapidly from a low base, primarily utilising funding from PB. Asset quality metrics are so far strong, and the Fitch Core Capital ratio was a high 53% at end-2016, reflecting large initial capital injections made by PB.