{"id":14175,"date":"2010-08-17T11:22:29","date_gmt":"2010-08-17T11:22:29","guid":{"rendered":"https:\/\/armbanks.am\/2010\/08\/17\/231412\/"},"modified":"2024-12-15T12:48:01","modified_gmt":"2024-12-15T12:48:01","slug":"fitch-withdraws-vtb-bank-armenias-ratings-in-accordance-with-banks-decision","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2010\/08\/17\/14175\/","title":{"rendered":"Fitch withdraws VTB Bank (Armenia)’s ratings in accordance with bank\u2019s decision"},"content":{"rendered":"

YEREVAN, August 17. \/ARKA\/.<\/strong> Fitch Ratings has affirmed and withdrawn the ratings of VTB Bank (Armenia) (VTBA), including its Long-term Issuer Default ratings (IDR) at ‘BB’, the press office of Fitch Ratings reported on Tuesday.<\/p>\n

Fitch will no longer provide ratings or analytical coverage of VTBA.<\/p>\n

\u201cLong-term foreign and local currency IDRs: affirmed at ‘BB’ with Stable Outlook; withdrawn. Short-term foreign and local currency IDRs: affirmed at ‘B’; withdrawn. Individual Rating: affirmed at ‘D\/E’; withdrawn. Support Rating: affirmed at ‘3’; withdrawn,\u201d the press release says.<\/p>\n

Yury Gusev, director of the bank\u2019s financial division, commenting this, told ARKA News Agency that VTB group is now running a campaign to centralize the lending program of all its members.<\/p>\n

He said that under the new lending strategy, the VTB Bank (Armenia) doesn\u2019t plan to enter outside markets independently.<\/p>\n

\u201cTaking into account this factor as well as the bank\u2019s expenditure optimization campaign, we have decided to suspend our cooperation with Fitch Ratings,\u201d Gusev said.<\/p>\n

VTB Bank (Armenia) CJSC joined VTB Group in April 2004.<\/p>\n

Now VTB OJSC, the second largest bank in Russia, holds 100% of the VTB Bank (Armenia)\u2019s shares.<\/p>\n

VTB Bank (Armenia) is traditionally ranked among leaders of Armenian banking system thanks to some indicators.<\/p>\n

The bank has 68 branches in Armenia. This is the biggest branch network in the country.<\/p>\n

The IDRs of VTBA reflect Fitch’s view of the moderate probability of support being forthcoming, if required, from its owner, Russia’s JSC VTB Bank (VTB; ‘BBB’\/Stable\/’F3’). This is based on VTB’s 100% ownership, the strategic importance of CIS markets for VTB and the small size of VTBA relative to its parent. However, the extent to which this support can be factored into the ratings is limited by Armenian transfer and convertibility risks, as captured in the ‘BB’ Country Ceiling.<\/p>\n

The Individual Rating of ‘D\/E’ reflects the high proportion of foreign currency loans, operational risks associated with its branch network, the still significant dependence on the parent for funding and liquidity support and a difficult, albeit improving, operating environment. However, it also takes into account the bank’s solid capitalization, the recent stabilization of asset quality metrics and the significant domestic franchise. -0-<\/p>\n","protected":false},"excerpt":{"rendered":"

Fitch withdraws VTB Bank (Armenia)’s ratings in accordance with bank\u2019s decision.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[15837,15418,15645,15826,309],"class_list":{"0":"post-14175","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-banks-en-en","7":"category-news","8":"tag-armenia-2","9":"tag-bank-en-2","10":"tag-fitch-2","11":"tag-vtb-bank-armenia-2","12":"tag-309"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/14175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=14175"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/14175\/revisions"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=14175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=14175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=14175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}