S&P Global Ratings on Feb. 28 affirmed the BB-/B long- and short-term issuer credit ratings of Azerbaijan-based Kapital Bank ASC and revised the outlook on the bank to stable from negative.
The agency also revised the bank's stand-alone credit profile "bb-" from "b+."
The revision reflects S&P's view that the economic risk trend in Azerbaijan's banking sector is now stable rather than negative, with pressure from economic fundamentals easing as reflected in the recent outlook revision on the sovereign.
The rating agency said Kapital Bank's creditworthiness will benefit from stabilizing economic conditions and that the bank will continue demonstrating solid financial performance due to strong customer franchise, sustainable operating revenue expansion and controlled credit losses.
The revised outlook shows that over the next 12 to 18 months, Kapital Bank's creditworthiness will remain broadly stable backed by strong profitability, stable asset quality and sufficient capital and liquidity, S&P said.
Pasha Holding LLC is the ultimate parent of Kapital Bank.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
