Moody`s raises Ameriabank`s rating to ``Ba3``

ArmInfo. Moody's has reviewed and raised Ameriabank's rating. According to the press service of Ameriabank, the following ratings of Ameriabank CJSC were  raised: B1 to Ba3 for long-term local currency bank deposits, with  stable outlook, B2 to B1 for long-term foreign currency bank  deposits, Ba3 to Ba2 for long-term counterparty risk (CRR).  This  follows the upgrade of Armenia's sovereign rating to Ba3 (stable  outlook) from B1 (positive outlook) on 27 August 2019. 

According to the bank's statement,  the upgrade of Ameriabank's  long-term local currency deposit rating to Ba3 from B1 was driven by  the upgrade of its Baseline Credit Assessments (BCAs) to ba3 from b1.  The upgrade of the bank's BCA to ba3 reflects a combination of  improved Armenian banking system's Macro Profile and the bank's  consistently sound financial metrics such as: historically strong  asset quality indicators, its strong capital position, robust  profitability metrics, and sufficient liquidity and diversified  funding base.  It is worth noting that, according to the rating scale  of Moody's, banks with a rating of category B have high independent  financial stability. Moody's usually assigns a rating of this  category to organizations operating in a predictable and stable  operating environment and having: highly evaluated and strong market  positions, good financial performance.

This follows the upgrade of Armenia's sovereign rating to Ba3 (stable outlook) from B1 (positive outlook) on 27 August 2019. The upgrade of Ameriabank's long-term local currency deposit rating to Ba3 from B1 was driven by the upgrade of its Baseline Credit Assessments (BCAs) to ba3 from b1.The upgrade of the bank's BCA to ba3 reflects a combination of improved Armenian banking system's Macro Profile and the bank's consistently sound financial metrics such as:

According to the Financial Rating of the Banks of Armenia as of June  30, 2019, prepared by ArmInfo IC, Ameriabank's assets amounted to $  1.7 billion (an increase of 15.8% y-o-y), credit investments - $ 1.2  billion (an increase of 11.3% y-o-y), total capital - $ 195.6 million  (an increase of 9.4% y-o-y), total liabilities - $ 1.5 billion (an  increase of 16.7% y-o-y), and net profit for the first half of the  year - $ 11.7 million. By these indicators, Ameriabank holds the  lead. Corporate lending dominates in the bank's loan portfolio - over  78% or $ 902.3 million (1st position), mainly with a focus on the  industrial sector (including the energy complex) and trade. And in  the bank's liabilities, more than 31% or $ 462.6 million is accounted  for by term deposits, of which $ 293.8 million are deposits of  individuals, and according to these indicators, the bank maintains  its position in TOP-3. The share of credit resources attracted under  international programs accounts for more than 27% of the bank's  liabilities or $ 405.7 million, and Ameriabank holds the lead in  terms of their volume.  To recall, Ameriabank is a dynamically  developing bank in Armenia, one of the largest and most stable  financial institutions in the country. Today Ameriabank is a  universal bank providing a full package of corporate, investment and  retail banking services, and a leader in the banking sector of  Armenia in all key indicators (assets, liabilities, loan portfolio,  net profit and capital). The bank has been operating in the Armenian  market since October 31, 1996. The shareholders of Ameriabank are:  Ameria Group CY Ltd.- 56.53%, EBRD - 17.78%, Asian Development Bank  (ADB) - 13.96% and ESPS Holding Limited - 11.73%. The Bank is awarded  annually distinctive awards from Euromoney, from Global Finance, from  The Banker / FT, from Commerzbank. Ameriabank is the only financial  institution in Armenia that has a S&P credit rating (B +, with a  stable outlook).