Arka News Agency, Armenia
Feb 23 2007
MOODY’S CONFERS INTERNATIONAL RATING TO ARMENIA’S ARMECONOMBANK
YEREVAN, February 23. /ARKA/. The Moody’s Investors Service
international rating agency conferred international rating to
Armeconombank (Armenia).
The B1/Non-Prime long-term and short-term ratings of deposits in
international and national currency, as well as "E+" financial
stability rating is given to the bank, the Executive Director and the
Chairman of Board of Armeconombank David Sukiasian told a press
conference. The forecast for all the rating is "stable".
"Armeconombank is the first bank to receive such a keen appreciation
by the Moody’s," Sukiasian said.
According to the Chairman of the Central Bank of Armenia (CBA) Tigran
Sargsian, giving ratings to commercial banks is one of the most
important processes in the development of the banking system: these
banks directly contributed to the speeding up of the process of
giving a sovereign rating to Armenia.
"In its turn, giving a sovereign rating to Armenia influences the
process of transferring the banks into rating agencies," he said.
Armeconombank OJSC was registered on August 26, 1991. More than 75%
of the bank’s shares are held by the main shareholders – EBRD (25% +
1 share) and the founders of "SIL" concern Sukiasian family (50.6%)
The banks assets exceeded AMD45bln with the total capital making
AMD7bln and the profit by the end of the year being AMD1.5bln. The
bank has 43 branches and more than 46,000 customers.
In 2006, for the fist time Armenia received a sovereign rating: the
international Fitch Ratings agency gave to Armenia the "BB-" issuer
default rating in international and national currency with the
"Stable" forecast.
Fitch also conferred to Armenia the short term "B" rating and the
"BB-" "country’s ceiling" rating.
On August 2006, Fitch Ratings increased Armenia’s country rating from
"BB-" to "BB".
On July 24, 2006 the Moody’s Investors Service gave to Armenia’s
Government Ba2 sovereign ratings in international and national
currency. ($1 = AMD353.70). N.V. -0–