Moody's cuts Bank Standard

Moody's Investors Service said it downgraded the long-term foreign- and local-currency deposit ratings of Azerbaijan's Bank Standard to B3 from B1 and its bank financial strength rating to E from E+.

The outlook for the long-term deposit ratings is negative while its bank financial strength rating has a stable outlook.

The downgrade was prompted by the material deterioration in its risk profile, as reflected in a significant decline in its asset quality, increasing market risk and stand-alone liquidity risks, Moody's said. The agency said it is concerned that the bank will likely need external support from the Central Bank of Azerbaijan.

The magnitude of the downgrade reflects an expectation of significant erosion of Bank Standard's capital base given the high level of anticipated credit and trading losses in relation to its equity, the agency said.

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