MOODY’S ASSIGNS ARDSHININVESTBANK GLC DEPOSIT RATING AND BFSR
arminfo
2008-07-30 14:37:00
ArmInfo. Moody’s Investors Service on 25 July, 2008 assigned Ba1
long-term and Not Prime short-term global local currency deposit
ratings to Armenia’s Ardshininvestbank ("ASHIB"), as well as Ba3
long-term and Not Prime short-term foreign currency deposit ratings
and a bank financial strength rating ("BFSR") of "D-". The outlook
on all ratings is stable.
Ardshininvestbank press-service told ArmInfo ASHIB’s "D-" BFSR —
which maps to a Baseline Credit Assessment of Ba3 – derives from its
good franchise as one of Armenia’s largest banks (ranking second in
terms of assets with a 12.2% market share as at YE2007 — reportedly
moving up to first place by March 2008 – 12.8% of aggregate assets
in the market) and good financial metrics, particularly, buoyant
profitability, solid capitalisation and above-average efficiency
ratios, within the Armenian context.
ASHIB’s long-term local currency deposit rating of Ba1 is based on
Moody’s assessment that the probability of systemic support for the
bank (using Armenia’s local currency deposit ceiling of Baa1) in the
event of need is high. Hence, this rating enjoys a two-notch uplift
from the bank’s Ba3 Baseline Credit Assessment.
ASHIB’s Ba3/Not Prime foreign currency deposit ratings are constrained
by Armenia’s foreign currency deposit ceilings and would move up in
tandem with any upgrades of this ceiling — up to the level of the
bank’s global local currency deposit ratings, currently Ba1/Not Prime.
Aram Andreasyan, Chairman of Ardshininvestbank’s Management Board,
said: "Acquiring ratings from Moody’s Investors Service is an important
event for our bank and a necessary step in our development.
This will help us attract funds from international capital markets
and will give us an opportunity to further develop our relationship
with existing and new investors/customers, both abroad and in Armenia".
Founded in 2003, Ardshininvestbank is one of the largest and most
successful banks in Armenia. Based on the financial report as of
June 30, 2008, Ardshininvestbank is the leading bank in the country
in terms of loan portfolio and profitability (with a net profit of
over $8 million YTD). Its total assets reached nearly $360 million,
and its equity reached about $70 million. The bank is universal and
has one of the country’s largest branch networks, with 55 branches
and an office in Paris. It offers a wide range of financial products
to its clients, and it is very active in corporate finance and trade
finance operations.