AMRATING/GLOBALRATING RAISES CREDIT RATING OF ARARATBANK FROM BB- TO BB OUTLOOK STABLE
ArmInfo
2009-08-06 13:53:00
ArmInfo. AmRating/GlobalRating has raised the credit rating of
ARARATBANK from BB- to BB Outlook Stable, the company press-service
reported.
Banking analyst of ArmInfo Karina Melikyan says the rating of the bank
is reasoned by sustainable rates and positive dynamics of development,
as well ad maximum transparency. Possible increase in dependence of
the part of the resource base on on-call resources and deposits of
individuals, deepening of sensitivity to exchange and credit risks
in conditions of the global financial crisis are rating restraining
factors. Nevertheless, these factors are to some-extent neutralized
as the bank is involved in the governmental stabilization program as
part of the credits from the World Bank and access to anti-crisis
resources provided from Russia to Armenia to support the banking
system and effective demand in the country through SME loans. The
rating raised from BB- to BB is a significant growth of the level of
political resources of the key shareholder of the bank, maintenance
of financial activity in the background of the crisis, as well as
beginning of implementation of the program of institutional development
of the bank with the support of the EBRD.
AmRating/GlobalRating Executive Director Emmanuil Lazarian says
ARARATBANK has been ensuring stable growth of key indicators over
the last 2 years and maintaining high quality of assets, sufficient
liquidity and low sensitivity to risks despite the crisis phenomena
in the economy of Armenia.
ARARATBANK OJSC is an average bank by assets. It is a developing bank
controlled by the largest oil trader in Armenia- FLASH Company. The
blocking stake belongs to the EBRD. The bank serves corporate clients,
finances SMEs, and actively develops retail lending. The bank has
rather high level of cooperation with international organizations
and occupies the 7th position in the banking system of Armenia by
the branch network.