ArmInfo. Moody's upgraded Converse bank's BCA to b1 from b2 and affirmed the bank's long-term deposit ratings at B1. The rating agency also changed the outlook on the B1 long-term deposit ratings to stable from negative. This is stated in the message of Converse Bank,
The upgrade of Converse bank's BCA and Adjusted BCA to b1 from b2 is driven by the bank's strengthened capital adequacy, profitability, and liquidity over the last two years. The upgrade of the bank's long-term CRRs toBa3 from B1 and the upgrade of the long- term CR Assessment to Ba3(cr) from B1(cr) follows the BCA upgrade.
Converse bank materially improved its profitability in terms of return on tangible assets to 3.1% in 2022 up from 1.1% in 2021 and 0.8% in 2020 largely driven by material foreign currency trading gains last year. Moody's expects moderation of trading gains through 2023 although net financial result will be supported by stronger net interest margin owing to high interest rate environment, and lower credit costs amid robust economic growth in the next 12-18 months.
According to Moody's report, the upgrade of Converse bank's BCA and Adjusted BCA to b1 from b2 is driven by the bank's strengthened capital adequacy, profitability, and liquidity over the last two years. The upgrade of the bank's long-term CRRs to Ba3 from B1, and the upgrade of the long-term CR Assessment to Ba3(cr) from B1(cr) follows the BCA upgrade.
Grant Akopian, Converse bank's CFO said: "The upgrade of Converse bank's BCA and stable outlook reflects the bank's strengthened asset quality and capital adequacy and is a testament to the efficiency of the measures and the work done amid the present challenging environment for the banking sector. We remain committed to delivering robust financial performance, improving our liquidity and assets quality metrics."
