Azərbaycan Beynəlxalq Bankının öhdəliklərinin könüllü restrukturizasiyası planı xarici kreditorlar tərəfindən qəbul edildikdən sonra Moody’s beynəlxalq reytinq agentliyi bankın reytinqlərinə yenidən baxaraq bəzi reytinqləri yüksəldib.

Bankın Mətbuat xidmətindən "Marja"ya daxil olmuş məlumata görə, xarici və yerli valyutada uzunmüddətli depozit reytinqi Caa2-dən Caa1 səviyyəsinə artırılıb. Xarici valyutada qorunmayan borclar reytinqi Caa3 səviyyəsindən Caa2-ə qaldırılıb.

Bankın kredit ödəmə qabiliyyətinin baza səviyyəsi (Baseline Credit Assessments - BCA) də “ca” pilləsindən “caa3” pilləsinə qədər yüksəlib. Eyni zamanda, qarşı tərəf kredit riski qiymətləndirməsi (CRA) Caa1 (cr) səviyyəsindən B3 səviyyəsinə yüksəlib. Bankın uzunmüddətli depozit reytinqinə pozitiv proqnoz verilib.

Agentliyin açıqlamasında bildirilib ki, yeni reytinqlər restrukturizasiya planı üzrə səsvermənin 18 iyulda elan olunmuş nəticələrinə əsaslanır. Reytinqlərdə baş verən müsbət dəyişikliklər restrukturizasiya prosesi başa çatandan sonra bankın maliyyə durumunun yaxşılaşacağı ilə bağlı Moody’s-in gözləntilərini əks etdirir. Agentliyin proqnozlarına görə, öhdəliklərin restrukturizasiyası planının bu şəkildə icrası bankın maliyyə dayanıqlığını, kapital mövqeyini gücləndirəcək və aktivlərinin keyfiyyətini yaxşılaşdıracaq. Öhdəliklərin könüllü restrukturizasiyası ilə yanaşı, problemli aktivlərin bankın balansından çıxarılması da aktivlərinin keyfiyyətinin yaxşılaşmasına kömək göstərəcək.

Moody’s ekspertlərinin rəyinə görə, problemli aktivlərin transferi bu ilin sonuna qədər başa çatacaq. Nəticədə, Bankın birinci dərəcəli kapitalının 13% ətrafında olması ehtimal edilir. Agentlik bankın 2018-ci ili mənfəətlə başa vuracağını gözləyir. Mənfəətlilik səviyyəsi, ölkənin makroiqtisadi durumundan da çox asılı olacaq.

Moody’s Azərbaycan hökumətinin böyük ehtimalla banka dəstəyi davam etdirəcəyini gözləyir. Bu gözlənti bankın səhmlərinin 95%-nin dövlətə məxsus olması, ABB-nin ölkənin ən böyük bankı olması və bank bazarındakı aktivlərin əhəmiyyətli hissəsini bölüşməsi kimi amillərlə əsaslandırılıb. Eyni zamanda, hökumətin bankda vəsait yerləşdirmiş əmanətçilərə və digər müştərilərə dəstək verdiyi xüsusi qeyd edilib. Belə ki, öhdəliklərin restrukturizasiyası prosesinin ABB-də depoziti olan müştərilərə heç bir təsiri olmayıb.

Rəydə o da göstərilib ki, restrukturizasiya planı başa çatdıqdan sonra Moody’s reytinqlərə yenidən baxacaq və gələcək durumuna uyğun olaraq bankın reytinqlərini yüksəldəcək.

Moody's upgrades International Bank of Azerbaijan following creditors'
agreement on its debt restructuring, concludes the review



London, 25 July 2017 -- Moody's Investors Service has today upgraded the
long-term foreign- and local-currency deposit ratings of International
Bank of Azerbaijan (IBA) to Caa1 from Caa2 and the foreign-currency
senior unsecured debt rating to Caa2 from Caa3. IBA's Baseline Credit
Assessment (BCA) was upgraded to caa3 from ca and the long-term
counterparty risk assessment (CRA) to B3(cr) from Caa1(cr). The long-term
deposit ratings carry a positive outlook, while the debt ratings carry a
stable outlook. Not Prime short-term deposit ratings and Not Prime(cr)
short-term CRA were affirmed.

The rating action follows the announced agreement by the bank's
creditors' on its debt restructuring.

A full list of affected ratings can be found at the end of this press
release.

RATINGS RATIONALE

The rating action concludes Moody's review of IBA's ratings initiated on
26 May and follows the approval of the bank's restructuring plan by its
creditors, announced at the claimant's meeting on 18 July. The upgrade of
the bank's BCA to caa3 and deposit ratings to Caa1, with a positive
outlook, reflects Moody's expectation of the improvement in the bank's
financial metrics after completion of its restructuring, but incorporates
the uncertain pace of the bank's rehabilitation. Moody's believes that
the debt restructuring plan (if completed as IBA proposes) should restore
the bank's financial metrics, notably capital, asset quality, and
funding. The restructuring plan will come into force after obtaining
final approval from the regulator - Financial Market Supervision
Authority (FIMSA) and Azerbaijani Court by 1 September 2017. Although
Moody's considers risks to the legal completion of the deal as low, the
rating agency recognizes that challenges remain in the timely removal of
the additional bad assets, the recovery of the bank's profitability and
the management of its remaining open foreign-currency position.

As a result of the restructuring, designated foreign-currency debt of
USD3.34 billion will be exchanged under certain terms for newly-issued
bonds of the Republic of Azerbaijan (Ba1, RUR down) with a maximum
proposed haircut of 20% and new IBA bonds with an extended maturity (up
to a maximum of USD1 billion). Upon the successful completion of debt
restructuring, IBA will further transfer bad assets of AZN4.9 billion to
the non-banking state-owned credit organization Aqrakredit in exchange
for promissory notes of USD3 billion guaranteed by the state. These
measures will help to restore IBA's capital thanks to (1) the gain from
the restructured debt on the bank's balance-sheet with extended maturity,
and (2) a release of loan loss reserves after the asset transfer with a
consequent increase in the bank's paid-in capital. The bank expects a
Tier 1 capital adequacy ratio post-restructuring to be above the required
minimum (at around 13%), subject to the final debt reallocation, changes
in FX rate, and tax treatment of the operation.

Moody's expects bank's asset quality to improve following the planned
additional tranche of bad assets transfer, which is to be completed by
the end of 2017. Given that around 75% of the bank's consolidated loan
book will be transferred, the rating agency expects the quality of the
remaining part of AZN1.6 billion to be adequate. However, the bank's
future underwriting policy and risk appetite are unclear, as well as new
lending opportunities in the currently challenging operating conditions
in Azerbaijan.

IBA's funding structure will improve following completion of the debt
restructuring. Moody's estimates that market funds/tangible banking
assets will drop to 20% from the current 40%. The bank's liquidity
cushion will remain high, given limited lending prospects.

Moody's believes that the bank will remain loss-making throughout 2017
and may only return to profitability by the end of 2018, subject to
resuming new lending, which is dependent on the recovery of economic
environment in Azerbaijan. Although the bank's restructuring of
expensive foreign-currency liabilities will decrease funding costs, its
recurring pre-provision income will still be low given lack of
high-yielding assets. In addition, there are risks stemming from the
remaining open short foreign-currency position (which will amount to
around $1.2bln post restructuring, down from $2.8bln for USD as of
end-2016), rendering the bank's performance vulnerable to currency
fluctuations.

GOVERNMENT SUPPORT

Moody's incorporates a high likelihood of government support for IBA's
deposit ratings, resulting in two notches of uplift from the caa3 BCA.
This is based upon the government's 95.05% controlling stake in the bank;
IBA's significant market share by assets, being the largest bank in
Azerbaijan; and the government's track record of provided financial
support to the bank's deposit holders. Depositors were not affected by
the debt restructuring.

Moody's does not incorporate government support in the bank's debt
ratings.

FOREIGN-CURRENCY DEBT RATING

The Caa2 senior unsecured debt rating reflects the expected loss for
creditors of not more than 20% under the approved restructuring plan.
This debt will be cancelled as a result of the debt restructuring in
return to newly issued bonds and Moody's thus assigns a stable outlook
to this debt.

When the debt restructuring is completed, Moody's will withdraw its
ratings on foreign currency debt issues and assign new ratings to any new
debt issued by IBA.

WHAT COULD MOVE THE RATINGS DOWN / UP

Moody's may upgrade the bank's ratings following a successful completion
of the foreign-debt restructuring and a transfer of bad assets with the
reported restored capital adequacy above the minimum regulatory level,
and a return to sustainable profitability.

Negative rating action on the bank's deposit ratings is currently limited
as Moody's has positive outlook on them. If the bank fails to complete
the planned restructuring and/or anticipated support from the government
does not materialize, Moody's will change the outlook on the bank's
ratings to stable.

LIST OF AFFECTED RATINGS

Issuer: International Bank of Azerbaijan

Upgrades:

....LT Bank Deposits (Local & Foreign Currency), Upgraded to Caa1 from
Caa2, Outlook Changed To Positive From Rating Under Review

....Senior Unsecured Regular Bond/Debenture, Upgraded to Caa2 from Caa3,
Outlook Changed To Stable From Rating Under Review

....Adjusted Baseline Credit Assessment, Upgraded to caa3 from ca

....Baseline Credit Assessment, Upgraded to caa3 from ca

....LT Counterparty Risk Assessment, Upgraded to B3(cr) from Caa1(cr)

Affirmations:

....ST Bank Deposits (Local & Foreign Currency), Affirmed NP

....ST Counterparty Risk Assessment, Affirmed NP(cr)

Outlook Actions:

....Outlook, Changed To Positive(m) From Rating Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in
January 2016. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this
announcement provides certain regulatory disclosures in relation to each
rating of a subsequently issued bond or note of the same series or
category/class of debt or pursuant to a program for which the ratings are
derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider, this
announcement provides certain regulatory disclosures in relation to the
credit rating action on the support provider and in relation to each
particular credit rating action for securities that derive their credit
ratings from the support provider's credit rating. For provisional
ratings, this announcement provides certain regulatory disclosures in
relation to the provisional rating assigned, and in relation to a
definitive rating that may be assigned subsequent to the final issuance
of the debt, in each case where the transaction structure and terms have
not changed prior to the assignment of the definitive rating in a manner
that would have affected the rating. For further information please see
the ratings tab on the issuer/entity page for the respective issuer on
www.moodys.com.

For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action, and
whose ratings may change as a result of this credit rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures, if
applicable to jurisdiction: Ancillary Services, Disclosure to rated
entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.