(®) Fitch Beynəlxalq Reytinq Agentliyi ABB-nin reytinqlərinə yenidən baxaraq Bankın Uzunmüddətli emitentin defolt reytinqini BB- səviyyəsindən BB səviyyəsinə qədər yüksəldib. ABB-nin Dayanıqlılıq reytinqi də bb- səviyyəsindən bb səviyyəsinə qalxıb. Reytinq proqnozu isə Pozitiv olaraq müəyyənləşib.  

Bu barədə ABB-nin yaydığı məlumatda bildirilir. 

Qeyd edilib ki, reytinqlərin yüksəldilməsi ABB-nin 2024-cü ilin 6 ayı üzrə konsolidə edilmiş maliyyə hesabatındakı yüksək göstəricilərinə, güclü kapital mövqeyinə əsaslanır. Agentliyin proqnozuna görə, ortamüddətli perspektivdə ABB-nin aktivlərinin keyfiyyəti və gəlirliliyi davamlı olaraq möhkəmlənəcək.

ABB-nin Dayanıqlılıq reytinqinin yüksəlməsi Bankın dayanıqlı maliyyə durumunu əks etdirir. Güclü balans strukturu Bankın aktivlərinin keyfiyyətinin davamlı şəkildə artmasına, yüksək gəlirliliyinə şərait yaradır, möhkəm kapital mövqeyini və likvidliyini təmin edir.

Agentlik ekspertlərinin proqnozlarına əsasən, Bankın əməliyyat gəlirliliyi ortamüddətli perspektivdə də güclü səviyyədə qalacaq. 

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Fitch Upgrades International Bank of Azerbaijan to 'BB'; Outlook Positive

Fitch Ratings - Dubai - 02 Oct 2024: Fitch Ratings has upgraded OJSC International Bank of Azerbaijan's (ABB) Long-Term (LT) Issuer Default Rating (IDR) to 'BB' from 'BB-'. The Outlook is Positive. Fitch has also upgraded the bank's Viability Rating (VR) to 'bb' from 'bb-'. A full list of rating actions is below.

The upgrade reflects our view that ABB's financial metrics remain exceptionally strong in the local context, supported by the improved operating environment. The Positive Outlook reflects Fitch's expectations that the bank's loan growth will moderate in the medium term, while its asset quality and profitability will remain robust on a sustained basis.

Key Rating Drivers

ABB's 'BB' LT IDR is driven by its standalone profile, as captured by its VR of 'bb'. The VR reflects the bank's strong domestic franchise, solid balance-sheet structure and robust financial metrics. These are counterbalanced by the bank's exposure to the emerging and oil-dependent Azerbaijani economy.

Strengthened Banking Sector: We have revised up our assessment of the operating environment for Azerbaijani banks to 'bb-'/stable from 'b+'/positive, underpinned by the increased financial stability in a cyclical economy dependent on oil revenues. The sector's financial profile has improved materially since 2017, as confirmed by the reduced dollarisation levels and pressure on capitalisation from legacy asset-quality risks. This was also supported by the central bank's efforts to tighten regulatory oversight and develop the local financial sector.

Strong Franchise; State Ownership: ABB is the largest bank in Azerbaijan, making up 26% of sector assets and 23% of sector loans at end-1H24. This results in the bank's strong domestic franchise and considerable pricing power. ABB is 92% state-owned.

Robust Asset Structure: ABB's loan book made up a moderate 41% of total assets at end-1H24, with the equal contributions from retail and corporate segments. In retail segment, the bank focuses on mortgages and unsecured cash loans, while the corporate portfolio comprises largely exposures to well-established enterprises. Non-loan assets (40%) were mostly liquid and of at least 'BBB-' credit quality. This balance-sheet structure translates into resilient asset quality and profitability, as well as into solid capital and liquidity buffers.

Stable Loan Quality: ABB's impaired loans (Stage 3 loans under IFRS 9) were stable at 3.4% of gross loans at end-1H24 (end-2023: 3.3%) and were fully covered by total loan loss allowances on the same date. Stage 2 loans added another 1.1% of gross loans at end-1H24. Fitch believes the largest corporate exposures are adequately classified and provisioned. We expect the impaired loans ratio to remain below 5% in 2024, although recent growth in the retail portfolio may result in a higher cost of risk, due to portfolio seasoning.

Superior Profitability: The annualised net interest income rose to 6.1% of average earning assets (including cash and cash equivalents) in 1H24 (2023: 5.3%), supported by loan growth. Coupled with good operating efficiency, this led to a strong pre-impairment profit covering 10% of average gross loans, while credit losses were limited. As a result, ABB's operating profit/risk-weighted assets (RWA) ratio remained high at 6.7% in 1H24 (2023: 7.3%). We expect the bank's operating profitability to moderate in the medium term, but remain strong.

Solid Capital Buffer: ABB's Fitch Core Capital (FCC) ratio fell to 27% at end-1H24 (end-2023: 30%), owing to 12% RWA growth and dividend payments (49% of 2023 net income). We expect ABB's FCC ratio to stabilise at a still high 25% in the medium term, after fast loan growth (we project 30% in 2024 and 20% in 2025) and considerable dividend pay-outs.

Concentrated Funding, Ample Liquidity: The bank is mostly deposit-funded (end-1H24: 82% of total liabilities). Single-name deposit concentration is high, with an outsized contribution from state-owned corporates (end-1H24: 56% of total deposits), but we view these depositors as stable and core. ABB's liquidity buffer is substantial in both local and foreign currencies, as reflected by a gross loans/customer deposits ratio of 62% at end-1H24.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

We could revise the Outlook on ABB's LT IDR to Stable from Positive, if either of the following occurred:

- An erosion of capital and liquidity buffers, affected by the combination of rapid asset growth and large dividend pay-outs;

- A material loan quality deterioration, stemming from aggressive loan growth, and a notable moderation in the bank's profitability, resulting from substantial loan impairment charges.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

An upgrade of ABB's VR and LT IDR would require a sustained record of reasonable loan quality and strong profitability, amid moderate loan growth and a stable Azerbaijani economic environment.

OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS

ABB's Government Support Rating (GSR) of 'no support' reflects that the support from the government of Azerbaijan cannot be relied upon. This captures a mixed and patchy record of state support provided to ABB in the past.