Moody's cuts Bank of Azerbaijan, outlook negative

Moody's Investors Service said it downgraded the following global scale ratings of International Bank of Azerbaijan: long-term and short-term local currency deposit ratings to Ba1/Not Prime from Baa3/Prime-3, long-term foreign currency senior unsecured debt rating to Ba1 from Baa3, and long-term foreign currency subordinated debt rating to Ba2 from Ba1.

The outlook has been changed to negative from stable.

At the same time, Moody's said it downwardly revised the company's stand-alone creditworthiness to B3 from B2 and changed the outlook on its stand-alone bank financial strength rating of E+ to negative from stable. The long-term foreign currency deposit rating of Ba2 was affirmed with a stable outlook.

Moody's said the downgrade is driven by the negative pressure on the bank's stand-alone creditworthiness - as reflected in the downward revision of the bank's stand-alone credit strength to B3, compared to B2 previously - resulting from a material deterioration in capitalization, asset quality and profitability.

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