Fitch gives Ameriabank B+ IDR; Ardshinbank view to stable

Fitch Ratings said it affirmed the long-term foreign-currency issuer default ratings of Ardshinbank and Ameriabank at B+ and revised the outlook on Ardshinbank to stable from negative.

The outlook on Ameriabank is stable.

The agency also assigned Ameriabank a B+ long-term local-currency issuer default rating.

Fitch said the issuer default ratings and senior debt ratings are driven by the banks' b+ viability ratings, which consider the banks' reasonable financial metrics, underpinned by the recovering economy and relative currency stability, available capital and liquidity buffers and solid domestic franchises (end-2016 market shares by total assets: 17% for Ameriabank and 13% for Ardshinbank). The ratings also factor in the banks' large balance-sheet concentrations and high loan dollarisation (70%-74% range).

The revision of Ardshinbank’s outlook to stable reflects the agency’s expectation that potential asset quality pressures, in particular, arising from the restructured/risky exposures could be gradually absorbed through the bank's earnings without eroding the bank's capital.

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