Fitch rates International Bank of Azerbaijan bond BB

Fitch Ratings said it assigned International Bank of Azerbaijan's upcoming debut eurobond an expected long-term BB(EXP) rating.

The agency also affirmed IBA-Moscow, a 100% subsidiary of the bank, senior unsecured debt at BB and assigned its two upcoming similar issues expected BB(EXP) ratings.

International Bank of Azerbaijan's obligations on the eurobond issue will rank equally with the claims of other senior unsecured creditors, except the claims of retail depositors. Under Azerbaijani law, the claims of retail depositors rank above those of other senior unsecured creditors.

At end-2013, retail deposits accounted for 28% of the bank's total liabilities.

The eurobond issue will have a put option that can be exercised if the state (the current majority shareholder) ceases, at any time, to control directly or indirectly 50% plus one share of IBA.

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