Fitch Ratings assigns Ameriabank's $15 million issue of fixed-rate senior unsecured notes 'B+' final long-term rating
21.07.2016,
14:04
Fitch Ratings has assigned Ameriabank's USD15 million issue of fixed-rate senior unsecured notes a final Long-term rating of 'B+' and a Recovery Rating of 'RR4', the rating agency reports.
YEREVAN, July 21. /ARKA/. Fitch Ratings has assigned Ameriabank's USD15 million issue of fixed-rate senior unsecured notes a final Long-term rating of 'B+' and a Recovery Rating of 'RR4', the rating agency reports.
According to the report, the bonds mature in July 2018 and have a coupon rate of 6.75% per annum.
The senior debt rating of Ameriabank is aligned with the bank's Long-Term Issuer Default Rating (IDR) of 'B+', as it represents direct, unsecured and unconditional obligation of the bank.
The issue's Recovery Rating of 'RR4' reflects average recovery prospects for noteholders in case of default.
Ameriabank's Long-Term IDR of 'B+', which has a Stable Outlook, reflects the high dollarisation and concentration of Ameriabank's balance sheet, and the bank's recent rapid credit growth in Armenia's fairly high-risk environment.
It also factors in the bank's reasonable financial metrics, albeit under moderate pressure from a challenging operating environment, solid loss absorption capacity, adequate liquidity buffer and strong domestic franchise.
The rating agency also says that changes to Ameriabank's Long-Term IDR would impact the issue's rating. Ameriabank's credit metrics are highly reliant on the performance of the economy and stability of the local currency.
It says deterioration in the domestic economy, resulting in the marked weakening of the bank's asset quality or capitalisation, without sufficient support being provided by the bank's shareholders, may result in a rating downgrade. Improvement of the country's economic prospects would be supportive of bank's credit profile, although an upgrade is unlikely in the medium-term.
In January 2016, Fits Ratings affirmed Armenia's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B+' with a Stable Outlook. Fitch has also affirmed the issue ratings on Armenia's senior unsecured foreign currency bonds at 'B+'.
Ameriabank CJSC is a universal bank providing investment, corporate and retail banking services in a package.
Ameriabank is the first investment bank in Armenia. It started providing a wide range of innovative banking services in 2007.
The bank’s assets totaled AMD 522.1 billion and liabilities AMD 461.8 billion in late June.
Its capital amounted to AMD 60.2 billion and credit exposure to AMD 348.7 billion. The bank earned AMD 144.1 million in net profit in the second quarter of this year. ($1 – AMD 476.56). ---0----
According to the report, the bonds mature in July 2018 and have a coupon rate of 6.75% per annum.
The senior debt rating of Ameriabank is aligned with the bank's Long-Term Issuer Default Rating (IDR) of 'B+', as it represents direct, unsecured and unconditional obligation of the bank.
The issue's Recovery Rating of 'RR4' reflects average recovery prospects for noteholders in case of default.
Ameriabank's Long-Term IDR of 'B+', which has a Stable Outlook, reflects the high dollarisation and concentration of Ameriabank's balance sheet, and the bank's recent rapid credit growth in Armenia's fairly high-risk environment.
It also factors in the bank's reasonable financial metrics, albeit under moderate pressure from a challenging operating environment, solid loss absorption capacity, adequate liquidity buffer and strong domestic franchise.
The rating agency also says that changes to Ameriabank's Long-Term IDR would impact the issue's rating. Ameriabank's credit metrics are highly reliant on the performance of the economy and stability of the local currency.
It says deterioration in the domestic economy, resulting in the marked weakening of the bank's asset quality or capitalisation, without sufficient support being provided by the bank's shareholders, may result in a rating downgrade. Improvement of the country's economic prospects would be supportive of bank's credit profile, although an upgrade is unlikely in the medium-term.
In January 2016, Fits Ratings affirmed Armenia's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B+' with a Stable Outlook. Fitch has also affirmed the issue ratings on Armenia's senior unsecured foreign currency bonds at 'B+'.
Ameriabank CJSC is a universal bank providing investment, corporate and retail banking services in a package.
Ameriabank is the first investment bank in Armenia. It started providing a wide range of innovative banking services in 2007.
The bank’s assets totaled AMD 522.1 billion and liabilities AMD 461.8 billion in late June.
Its capital amounted to AMD 60.2 billion and credit exposure to AMD 348.7 billion. The bank earned AMD 144.1 million in net profit in the second quarter of this year. ($1 – AMD 476.56). ---0----
