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Moody's upgrades 6 Armenia-based banks

Moody's on Sept. 3 upgraded the long-term local- and foreign-currency counterparty risk ratings of Ameriabank CJSC, Industrial Construction Bank CJSC, or Ardshinbank, and Inecobank CJSC to Ba2 from Ba3 and their long-term counterparty risk assessments to Ba2(cr) from Ba3(cr), following the upgrade of Armenia's sovereign rating.

The baseline and adjusted baseline credit assessments of the three banks were raised to "ba3" from "b1," while those of Armeconombank OJSC and Converse Bank CJSC were upgraded to "b1" from "b2." VTB Bank (Armenia) CJSC's baseline and adjusted baseline credit assessments were affirmed at "b3" and "b1," respectively.

The agency upgraded the long-term local-currency bank deposits of Ameriabank and Ardshinbank and the senior unsecured foreign-currency regular bond of the latter to Ba3 from B1. The outlook on the ratings was changed to stable from positive.

At the same time, Moody's upgraded the long-term foreign-currency bank deposits of Ameriabank, Ardshinbank, Inecobank, Armeconombank, Converse Bank and VTB Bank to B1 from B2, with a stable outlook. The short-term foreign- and local-currency counterparty risk ratings and bank deposits of the six banks were affirmed at Not Prime, and their short-term counterparty risk assessments were affirmed at Not Prime(cr).

Converse Bank's long-term local-currency bank deposits were upgraded to B1 from B2, with the outlook changed to stable from positive. The long-term counterparty risk assessments of Armeconombank and Converse Bank were upgraded to Ba3(cr) from B1(cr).

For VTB Bank, the rating agency affirmed the long-term local- and foreign-currency counterparty risk ratings at Ba3, the long-term local-currency bank deposits at B1 with a stable outlook, and the long- and short-term counterparty risk assessments at Ba3(cr)/Not Prime(cr).

A better operating environment for banks in Armenia and sound solvency metrics of the banks led to the ratings actions, Moody's said.