Moody's upgrades deposit ratings of Bank Technique to Caa1

Moody's Investors Service said it upgraded the long-term foreign- and local-currency deposit ratings of Bank Technique OJSC to Caa1 from Caa2 with positive outlook. 

Concurrently, Moody's affirmed the bank's standalone bank financial strength rating (BFSR) of E, which is equivalent to a baseline credit assessment (BCA) of caa2. The outlook on the BFSR is stable. The bank's Not-Prime short-term local- and foreign-currency deposit ratings were also affirmed; the short-term ratings carry no specific outlook.

Moody's said the rating action reflects the improvement of Bank Technique's financial profile in terms of asset quality and capitalisation. Bank Technique has exhibited visible progress in recovering problem loans and restoring its capital base, enabling the bank to comply with regulatory capital requirements (specified by the Central Bank of Azerbaijan) and to expand its banking franchise.

Moody's rating action is largely based on Bank Technique's audited financial statements for 2013 and the first six months of 2014, prepared under IFRS.

Bakudaily.Az