Ameriabank becomes first Armenian bank to receive Long-term Issuer Default Rating (IDR) rating at B+

Fitch Ratings has 

published the Long-term Issuer Default Rating (IDR) rating of Ameriabank at B+ with a Negative Outlook.  Ameriabank has become the first Armenian bank with no foreign parent bank to receive a 

rating similar to the country ceiling rating, which is a high assessment.  The rating testifies to open and transparent activity of Ameriabank. 

 

According to Fitch, Ameriabanks IDRs are driven by its Viability Rating (VR) of b+. The VR reflects the banks high dollarisation of the balance sheet, significant risk concentrations, rapid recent growth in a fairly high-risk environment and an only moderate loss absorption capacity under pressure from an upward revaluation of FX-denominated assets. The ratings also consider the bank's so far reasonable financial metrics, sizeable liquidity buffer, manageable refinancing risks and solid domestic franchise. 

 

Ameriabank press-office told ArmInfo the rating is based on such criteria as Ameriabank's leadership position in the banking system of Armenia amid stiff competition, the share in the market, high lending 

rates, loan portfolio quality, sustainable growth of liabilities to customers, dynamics of the trade finance, portfolio of deposits, ROA and ROE.

 

To recall, in Jan 2015, Fitch downgraded Armenia's Long-term foreign and local currency Issuer Default Ratings (IDRs) to B+ from BB-. The Outlook is Stable. The issue ratings on Armenia's senior unsecured foreign and local currency bonds have also been downgraded to B+ from BB-. The Country Ceiling was revised to BB- from BB and the Short-term foreign currency IDR affirmed at 'B'. 

 

In CIS,  Fitch assigned ratings to 116 financial organizations and some companies.  

 

According to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency, Ameriabank's total capital amounted to 42.4 billion drams (5th rank) on Jan 2 2015, with a 9.4% year-over-year 

growth.  Assets totaled 399.7 bln drams (1st rank), with a 26,9% y-o-y growth. Loans accounted for 71% or 282 bln drams of total assets (1st rank), with a 62.3% y-o-y growth. Ameriabank's net profit 

for 2014 totaled 7.1 bln drams (1st rank), with an 18% y-o-y growth.  Call liabilities and fixed assets of the bank totaled 212.5 bln drams (1st rank), with a 20% y-o-y growth, of which 65% or 138.4 bln drams 

are fixed deposits (mainly personal ones).  Ameriabank occupies the 2nd rank by the funds raised from international organizations - 102.3 bln drams (nearly 30% of total liabilities) with a 28% y-o-y growth. 

ROA for 2014 totaled 2.12% (5th rank), ROE - 17.78% (2nd rank).  According to Ameriabank's data, as of Oct 1 2014, the trade finance portfolio of the bank reached $130 million with a 47% y-o-y growth. 

The bank accounted for over 50% of the total market of trade finance in Armenia. Ameriabank anticipates a 50% growth of the trade finance portfolio in 2015.  

 

Ameriabank CJSC  is a universal bank offering corporate, investment and retail banking services in a comprehensive package of banking solutions. Ameria Group CY Ltd. is the sole shareholder of the Bank.