Moody`s upgrades Converse bank`s ratings and changed outlook to stable

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."