{"id":89656,"date":"2015-07-14T11:42:51","date_gmt":"2015-07-14T11:42:51","guid":{"rendered":"https:\/\/armbanks.am\/2015\/07\/14\/243222\/"},"modified":"2024-12-15T13:19:04","modified_gmt":"2024-12-15T13:19:04","slug":"fitch-rates-ardshinbanks-upcoming-senior-unsecured-notes-bexprr4","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2015\/07\/14\/89656\/","title":{"rendered":"Fitch rates Ardshinbank’s upcoming senior unsecured notes ‘B+(EXP)’\/’RR4’"},"content":{"rendered":"

YEREVAN, July 14, \/ARKA\/.<\/strong> Fitch Ratings said it has assigned Dilijan Finance B.V.’s upcoming issue of senior unsecured notes an expected Long-term rating of ‘B+(EXP)’ and a Recovery Rating of ‘RR4’. These limited recourse notes are to be used solely for financing a US dollar-denominated loan to Ardshinbank CJSC (Ardshin).<\/p>\n

Fitch ratings said ina press release that Ardshin has a Long-term Issuer Default Rating (IDR) of ‘B+’ with Negative Outlook, a Short-term IDR of ‘B’, a Viability Rating of ‘b+’, a Support Rating of ‘5’ and a Support Rating Floor of ‘No Floor’. The total amount and final maturity of the issue are yet to be determined.<\/p>\n

The final rating is contingent upon the receipt of final documents conforming to information already received.<\/p>\n

The issue’s rating corresponds to Ardshin’s ‘B+’ Long-term IDR, which considers the high dollarisation of the bank’s balance sheet, large loan concentrations, rapid recent growth in a fairly high-risk environment and moderate loss absorption capacity relative to regulatory capital requirements.<\/p>\n

The rating also reflects the bank’s notable domestic franchise, reasonable financial metrics, solid IFRS\/Basel capital ratios and an adequate liquidity buffer in light of upcoming wholesale debt maturities.<\/p>\n

The Negative Outlook on the bank’s Long-term IDR is driven by a weak operating environment in Armenia, and reflects Fitch’s view that this is likely to negatively impact the bank’s profitability metrics, capitalisation and asset quality.<\/p>\n

The issue’s Recovery Rating of ‘RR4’ reflects average recovery prospects for bondholders in case of default.<\/p>\n

Changes to Ardshin’s Long-term IDR would impact the issue’s rating. Downside pressure on Ardshin’s ratings could arise if the weak operating environment translates into a marked deterioration in the bank’s asset quality, performance and capital metrics. A major liquidity shortfall could also cause a downgrade.<\/p>\n

Stabilisation of the country’s economic prospects, and maintaining the bank’s currently sound asset quality and profitability metrics would reduce downward pressure on the ratings. -0-<\/p>\n","protected":false},"excerpt":{"rendered":"

Fitch Ratings said it has assigned Dilijan Finance B.V.’s upcoming issue of senior unsecured notes an expected Long-term rating of ‘B+(EXP)’ and a Recovery Rating of ‘RR4’. These limited recourse notes are to be used solely for financing a US dollar-denominated loan to Ardshinbank CJSC (Ardshin)<\/p>\n","protected":false},"author":1,"featured_media":165161,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[15717,15837,12160],"class_list":{"0":"post-89656","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banks-en-en","8":"category-news","9":"tag-ardshinbank-2","10":"tag-armenia-2","11":"tag-rate"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/89656","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=89656"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/89656\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/165161"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=89656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=89656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=89656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}