BAKU, Azerbaijan, Apr. 29
By Fidan Babayeva - Trend:
S&P Global Ratings has revised outlook on Azerbaijan’s Kapital Bank to stable from positive and affirming the 'BB-/B' ratings and has affirmed 'B+/B' ratings on PASHA Bank and maintained the stable outlook, Trend reports on April 29 referring to S&P Global Ratings.
“The banks will be able to withstand the current crisis better than local and international peers, thanks to sufficient capital and liquidity buffers,” the message said.
“We expect subdued loan growth in 2020-2021 will likely ease pressure on capitalization, which we think will remain adequate, despite no planned capital injections,” the message said.
“Moreover, we expect the bank to sustain its substantial market share in retail lending and funding in Azerbaijan as the country's third-largest bank,” the message said. “Our base case is that the bank will maintain a broadly stable deposit base of retail and government-related entities, and a high liquidity cushion.”
“The stable outlook on Kapital Bank reflects our expectation that the bank's adequate capitalization, stable deposit funding, and ample liquidity will enable it to withstand potential stresses from macroeconomic contraction and the COVID-19 pandemic over the next 12 months,” the message said.
“We affirmed our rating on PASHA Bank and maintained the stable outlook because we see PASHA Bank's good earning capacity enabling it to absorb credit losses stemming from potentially higher NPLs in the current economic environment,” the message said.
“The stable outlook also reflects our expectation that the bank's sizable market share and solid franchise in corporate lending will support its business volumes and revenue over the next 12 months, while its high liquidity buffer and stable customer deposits will underpin its credit profile,” the message said.
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