Moody’s global rating agency has reaffirmed Ameriabank’s Ba3 long-term local currency bank deposits rating with stable outlook. Ameriabank believes that rating affirmation is an important factor amid the situation driven by COVID-19.
Moody’s decision to affirm the rating reflects a number of important criteria, including well-diversified loan book structure. In particular, as of January 1, 2020, Ameriabank’s loans to SME accounted for 17.4% of the Bank’s total loans. The Bank’s loans to individuals accounted for 25% of the total loan book, and were almost equally split between mortgages and consumer loans.
Moody’s long-term local currency bank deposits rating reflects:
– Diversified business profile and strong positions on the domestic market
– Improved asset quality indicators and good loss absorption capacity, evidenced by robust capital buffers, good profitability and adequate problem loans coverage
– Sufficient liquidity and diversified funding base
Despite the challenging environment amid the coronavirus outbreak Moody’s expects that the Bank’s funding and liquidity profiles will remain stable.