Fitch rates Ameria notes B+

Fitch Ratings said it assigned a final long-term rating of B+ with recovery rating of RR4 to CJSC Ameriabank's (Ameria) $15 million issue of fixed-rate senior unsecured notes.

The bonds mature in July 2018 and have a coupon rate of 6¾% per year.

The bank’s senior debt rating is aligned with its long-term issuer default rating of B+ as it represents direct, unsecured and unconditional obligation of the bank.

The issue's recovery rating of RR4 reflects average recovery prospects for noteholders in case of default, the agency explained.

The ratings consider the high dollarization and concentration of the bank’s balance sheet, Fitch said, and the bank's recent rapid credit growth in Armenia's high risk environment.

The ratings also factor in the bank's reasonable financial metrics, albeit under moderate pressure from a challenging operating environment, solid loss absorption capacity, adequate liquidity buffer and strong domestic franchise, the agency added.

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