"Fitch" and "Moody`s" downgrade rating of International Bank of Azerbaijan

The International Bank of Azerbaijan (IBA) at the next stage of the recovery process started voluntary restructuring of liabilities to foreign creditors of the Bank, as a result of which the international rating agencies Fitch and Moody's revised the rating of the IBA.

As expected, Fitch assigned the Bank a CCC rating, and Moody's rating was revised to the level of CAA3.

The Chairman of the International Bank of Azerbaijan, commenting on the decision of the international rating agencies, noted that this is relevant to the international practice: “This is a normal practice and quite expected decision for us. Similar cases occur in the practice of other financial structures that have passed through a similar process. According to the methodology of rating agencies, the ratings of financial structures in the process of restructuring liabilities are reduced for a short period of time. Upon completion of the process aimed at improving the financial performance of the institution, the ratings are re-established. The downgrade of the IBA ratings is also temporary.”