Friday, November 30 2018 18:54

ArmInfo. The reputable  US-based S&P Global Ratings assigned Ameriabank 'B+/B' long- and  short-term issuer credit ratings with stable outlook. As the press  service of the bank informs, Ameriabank is the first Armenian company  rated by S&P Global Ratings. So far, S&P Global Ratings has not  assigned a sovereign rating to the Republic of Armenia.   According to S&P Global Ratings, the Armenian sovereign's  creditworthiness reflects a constraint on the ratings on Ameriabank.  Meaning that Ameriabank's stand-alone credit profile (SACP) rated  'bb-' is one notch higher than its final 'B+' long-term rating.  

Ameriabank's creditworthiness reflects the bank's position as the  largest bank in Armenia, and S&P Global Ratings' expectation that it  will maintain its leading position in the market and its  capitalization will strengthen over the next 24 months, supported by   stable profits.  

The stable outlook over rating horizon of the next 12 months reflects  S&P Global Ratings' prediction that the bank's business and financial  profiles will remain stable, supported by its solid market position  and improving economic prospects in Armenia.  

S&P Global Ratings expects the banking system in Armenia to be  stable, with no apparent market distortions. The trend for industry  risk is also considered to be stable.  

In the rating, the agency sees credit risk as a weakness for the  Armenian banking sector, taking into consideration much higher than  peers' average level of loans in foreign currency, in particular to  unhedged retail borrowers and companies, and still-developing  judicial and legal systems. S&P Global Ratings consider the economic  risk trend for the banking sector in Armenia as stable.  

S&P Global Ratings also mentions that Ameriabank has reported good  profitability over the past six years, with an average return on  assets of 1.4%. The bank's cost-to-income ratio was 40% at year-end  2017, comparing well with that of local and international peers.  

In S&P Global Ratings' view Ameriabank is well positioned to retain  its leading market positions in Armenia, in light of the favorable  and improving macroeconomic environment, and supported by its  professional management team and a wealthy controlling shareholder  with significant experience in banking and the financial sector.

To note, Ameriabank, operating on the Armenian market since October  31, 1996, is a dynamically developing bank in Armenia, one of the  largest and most stable financial institutions in the country. As of  today, Ameriabank is a universal bank providing a full package of  corporate, investment and retail banking services, and the leader of  the banking sector of Armenia in all major indicators (assets,  liabilities, loan portfolio, net profit and capital). The Bank has  repeatedly won international financial awards from Euromoney, The  Banker, etc. As of October 1, 2018, the bank's shareholders are  Ameria Group CY Ltd- 56.6%, EBRD - 17.8%, Asian Development Bank -  13.98%, ESPS Holding Limited - 11.62%.