CBA RE-RATES 7 ENTERPRISES
Noyan Tapan
Dec 12 2007
YEREVAN, DECEMBER 12, NOYAN TAPAN. The Central Bank of Armenia (CBA)
has re-rated 7 enterprises. NT was informed by the CBA press service
that Ashtarak Kat CJSC received B+ rating, Tigran the Great Publishing
House CJSC – B-, Jermuk Plant CJSC – C+, Proshian Brandy Plant LLC –
C, Onix CJSC – C, Electrasark OJSC – C-, and Yerevan Jewelry Plant-1
OJSC – D+ rating.
The CBA assigns rating to enterprises by assessing and summarizing
the qualitative scores of their credit history, financial state
and activities by a 5-point system. The maxium rating is "A+",
while the minimum one is "F". The enterprises to have received 4.9
points and higher are assigned "A+" rating, 4.75-4.9 – "A" rating,
4.6-4.75 – "A-", 4.45-4.6 – "B+", 4.25-4.45 – "B", 4.1-4.25 – "B-"
rating. Enterprises to have received 2 points and lower are assigned
"F" rating.
The CBA is ready to accept as pledge bonds issued by enterprises with
"A", "B" and "C" ratings, when signing repo agreements with banks. The
CBA has established a privileged scale for weighing of bank assets’
risks – for credits given by commercial banks to enterprises with high
rating and for purchase of high rating enterprises’ bonds by commercial
banks; thanks to it, banks are interested in crediting enterprises
with high rating and in acquiring bonds issued by these enterprises.
34 Armenian companies have received ratings (from "B+" to "D") of
the CBA.