“Fitch” beynəlxalq reytinq agentliyi “Expressbank” ASC-nin emitentin uzunmüddətli defolt reytinqini “B” səviyyəsində təsdiq edib.

Agentliyin yaydığı məlumata görə, reytinq üzrə proqnoz “stabil”dir.

Məlumatda bildirilir ki, reytinqin “B” səviyyəsində təsdiq olunması bankın aktivlərinin keyfiyyətinin stabilləşdiyini, kapital dayanıqlılığının möhkəm, likvidliyin isə kifayət qədər olduğunu əks etdirir.

“2018-ci ili ilk rübünü sonuna bankda vaxtı keçmiş kreditlərin həcmi ümumi portfelin 3 faizi səviyyəsində olub. Demək olar ki, 2017-ci ildən bəri bu rəqəm dəyişməyib. Problemli kreditlərin böyük hissəsini kiçik və orta sahibkarlığın maliyyələşdirilməsi üçün verilən kreditləri təşkil edir. Bu kreditlərin kredit portfelində ümumi çəkisi 9 faizə bərabərdir,” – deyə məlumatda qeyd olunub.

Agentliyin mütəxəssisləri bildirir ki, bank müştərilərin hesablarından maliyyələşir:

“2017-ci ilin sonuna öhdəliklərin 88 faizi müştəri hesabları ilə bağlı olub ki, bunun da 61 faizi fiziki şəxslərə məxsusdur. Bankda korporativ hesabların böyük hissəsi dövlətə məxsus bir enerji şirkətinin (Azərenerji) əlində cəmlənib. Şirkətin bankdakı hesabı bütün öhdəliklərin 24 faizinə bərabərdir. Bununla yanaşı, şirkətin bankdakı vəsaitinin həcmi açıqlanmır”.

Fitch Affirms Expressbank at 'B'; Withdraws Atabank's Ratings

Fitch Ratings has affirmed Azerbaijan-based Expressbank Open Joint Stock Company's (EB) Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. At the same time, the agency has withdrawn Atabank's OJSC (AB) ratings, including its 'CCC' Long-Term IDR on Rating Watch Evolving (RWE), as the issuer has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the
ratings and we will no longer provide ratings or analytical coverage for AB. A full list of rating actions is at the end of this rating action commentary.

KEY RATING DRIVERS - ALL RATINGS

EXPRESSBANK (EB)

The affirmation of EB's ratings reflects its stabilised asset quality, solid capital buffers, limited exposure to foreign-exchange risks and comfortable liquidity. The ratings take into account EB's high level of related-party lending and its limited franchise in the vulnerable Azerbaijan's operating environment. The Stable Outlook on EB reflects our expectation that the bank will continue to gradually reduce its related-party exposure while risks stemming from rapid growth of third-party exposure can be covered by the bank's solid capital buffer.

At end-1Q18, non-performing loans (NPLs; loans overdue by more than 90 days) were a moderate 3% of loans (largely unchanged from end-2017) and were fully covered by total reserves. Restructured loans added a further 2%. The bulk of problem loans (NPLs and restructured) was originated in the SME portfolio (the segment amounted to 9% of total loans), while problem loans in EB's corporate loan book (66%) and retail portfolio (25%) remained low. NPL origination ratio in retail (estimated as the net increase in NPLs plus write-offs divided by average performing loans) decreased to 2% in 2017 from 7% in 2016, also helped by a low share of foreign-currency loans (10% of retail loans).

At end-2017, exposure to related parties included corporate loans (56% of loans, or 78% of Fitch Core Capital (FCC)) issued to a large company engaged in infrastructure construction and a government-supported start-up diversified production plant, and an AZN25 million uncovered guarantee in favour of these related companies (17% of FCC). In 2017-1Q18, related-party loans decreased by AZN18 million, while third-party corporate loans increased by AZN27 million to 14% of loans at end-1Q18 (end-2016: 1%). Retail lending returned to growth, up by 19% in 1Q18, after contracting by 24% in 2017 and by 28% in 2016.

EB's robust capital position, as expressed by its high FCC ratio, improved to 59% at end-2017 from 50% at end-2016 due to a moderate decrease in risk-weighted assets. The regulatory Tier 1 ratio was a lower 26% at end-1Q18 due to a partial deduction of the related-party exposures, while the total capital ratio was 28%, both comfortably above the respective minimums of 5% and 10%. The bank plans to reduce its related-party exposure further to avoid deterioration to regulatory capital ratios. Fitch estimates the ratios would be still above the regulatory minimums at end-1Q18 even if the exposure to related parties was fully deducted from the regulatory capital.

EB is funded by customer balances (88% of liabilities at end-2017) with the majority of funds raised from individuals (61% of the total). Corporate accounts are highly concentrated with one state-owned energy company comprising 24% of liabilities. Reported related-party funding is negligible. Buffer of highly liquid assets (cash and equivalents, net short-term interbank placements and placements with the Central Bank of Azerbaijan, including short-term bonds) remains sizeable, equal to a large 57% of customer funding at end-1Q18.

The EB's Support Rating Floor of 'No Floor' and Support Rating of '5' reflect its limited scale of operations and market share. Although Fitch believes some regulatory forbearance may be available for the bank in case of need, any extraordinary direct capital support from Azerbaijan authorities is very uncertain. This view is supported by the recent default of Open Joint Stock Company International Bank of Azerbaijan (B-/Stable), which is the largest bank in the country and is owned by the government. As a result, state support for less systemically important, privately owned banks cannot be relied upon. The potential for support from the bank's private shareholders is not factored into the ratings.

ATA BANK (AB)

Fitch has withdrawn AB's ratings without resolving the Rating Watch on its Long-Term IDR and Viability Rating due to insufficient information to assess the bank's credit profile. The agency placed AB's Long-Term IDR and VR on RWE on 10 December 2017 following the publication of the Exposure Draft of Fitch's revised Bank Rating Criteria, which expanded the rating scale by introducing '+' and '-' modifiers for the 'CCC' rating category. The revised Bank Rating Criteria was published on 23 March 2018.

Fitch notes that the main areas of concern with respect to the bank's credit profile remain weak asset quality and low reserve coverage of problem loans (see "Fitch Downgrades Azerbaijan's Atabank to "CCC'; Affirms Expressbank at 'B'" published on 10 August 2017 on www.fitchratings.com).

RATING SENSITIVITIES - ALL RATINGS

Positive rating action for EB would require a substantial franchise development through profitable growth of third-party business and a reduction in volumes of operations with affiliated parties, while maintaining adequate capitalisation and liquidity. Capital erosion as a result of asset-quality deterioration may lead to negative rating actions. Fitch believes that positive rating actions on the Support Rating and Support Rating Floor are unlikely in the near term.

Rating sensitivities are not applicable for AB as its ratings have been withdrawn.


The rating actions are as follows:

EB
Long-Term IDR: affirmed at 'B', Outlook Stable
Short-Term IDR: affirmed at 'B'
Viability Rating: affirmed at 'b'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'

AB
Long-Term IDR: 'CCC/RWE'; withdrawn
Short-Term IDR: 'C'; withdrawn
Viability Rating: 'ccc/RWE'; withdrawn
Support Rating: '5'; withdrawn
Support Rating Floor: 'No Floor'; withdrawn