S&P lowers Kapital Bank view to negative

Standard & Poor’s said it revised the outlook on Kapital Bank OJSC to negative from stable.

The BB- long-term and B short-term counterparty ratings also were affirmed.

S&P also said it affirmed the BB- long-term and B short-term counterparty credit ratings on Pasha Bank, along with the B- long-term and C short-term counterparty credit ratings on Muganbank.

The outlooks on both of those banks remain negative.

The revised outlook follows the lowering of the ratings on Azerbaijan, S&P said.

The agency said the economic risks for Azerbaijani banks have increased because of expected contraction of GDP in 2016, the local currency’s sharp depreciation in 2015 and increased credit risk in the economy, largely due to the drop in oil prices.

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