Fitch affirms International Bank of the Republic of Azerbaijan

Fitch Ratings said it affirmed the ratings of International Bank of the Republic of Azerbaijan (IBAR) at long-term BB-, short-term B, individual D/E and support 3.

The outlook on the long-term rating remains stable.

Fitch said the long-term, short-term and support ratings of IBAR reflect the moderate probability of support from the Azerbaijani authorities being forthcoming, if needed.

While they may have a strong propensity to provide support, based on IBAR's important role in the country's economy and banking system, Fitch said it also considers the ability of the Azerbaijani state to provide support, as reflected in the sovereign's long-term issuer default rating of BB.

The individual rating takes into account IBAR's small size by international standards; heavy lending and funding concentrations, which also raise corporate governance concerns, and the bank's significant undercapitalization, the agency added.

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