Fitch lowers International bank of Azerbaijan

Fitch Ratings said it downgraded International Bank of Azerbaijan's long-term issuer default rating to RD (restricted default) from CCC and removed it from Rating Watch evolving.

The downgrades follow news of the bank's restructuring plan presented May 23, Fitch said.

The proposed restructuring will represent a distressed debt exchange (DDE) as it will impose a material reduction in terms on certain senior third-party creditors through a combination of write-downs, tenor extensions and interest rate reductions, the agency said.

The bank expects to complete the restructuring following a creditors' meeting in July 2017, Fitch said.

But Fitch said it downgraded the ratings to RD now as the bank ceased servicing the obligations, subject to the restructuring, on May 10.

This period of non-servicing will continue until the restructuring is complete, the agency said.

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