Baku, Azerbaijan, Dec. 16
By Abbas Akhundov - Trend:
Moody's Investors Service has today changed the outlook to stable from developing on Bank Technique OJSC's Caa2 long-term local and foreign-currency deposit ratings, according to the agency's message.
"Concurrently, Moody's affirmed Bank Technique's standalone E bank financial strength rating (BFSR), which is equivalent to a baseline credit assessment (BCA) of caa3, and the bank's Caa2 long-term and Not Prime short-term local and foreign-currency deposit ratings," according to the message.
The outlook change reflects the recent stabilization of Bank Technique's financial profile, Moody's said.
"The bank has made progress in recovering problem loans and restoring its capital base, enabling it to comply with regulatory capital requirements by year-end 2013," according to the message.
According to Moody's, the rating action reflects the bank's (1) still-weak, albeit improved asset quality; (2) restored capital levels but still-weak loss-absorption capacity because of low provisioning levels and weak pre-provision profitability; and (3) stabilised liquidity and funding profile.
Considering the ongoing problem loan workouts, Moody's expects a gradual improvement in the bank's asset quality, profitability and capital levels over the next 12-18 months, which is in line with a stable outlook.
Bank Technique OJSC has been operating on the Azerbaijani banking market since 1994. As a result of the successful re-branding in 2012, it was able to create an image of the leading bank. Standing out for the successful and rapid development mechanism on the banking sector, Bank Technique offers a wide range of banking and financial services in Azerbaijan.
Currently the bank provides services in 32 branches and 8 bank departments in Baku, Absheron, Ganja, Sumgait, Guba, Mingechevir, Gabala, Sheki, Bilasuvar, Neftchala, Jalilabad, Khachmaz, Tovuz, Agstafa, Lankaran, Balakan and Terter.
The bank's website is: www.banktechnique.az.
