Fitch: Ardshinbank notes B+

Fitch Ratings said it assigned an expected long-term rating of B+ to Dilijan Finance BV’s upcoming issue of senior unsecured notes with a recovery rating of RR4.

These limited recourse notes are to be used solely for financing a dollar-denominated loan to Ardshinbank CJSC.

The bank has a long-term issuer default rating of B+ with negative outlook, short-term issuer default rating of B and viability rating of B+.

The total amount and final maturity of the issue are yet to be determined, the agency said.

The rating on the notes correspond to the bank’s B+ long-term issuer default rating, which considers the high dollarization of the bank’s balance sheet, large loan concentrations, rapid recent growth in a fairly high-risk environment and moderate loss-absorption capacity relative to regulatory capital requirements, Fitch said.

The ratings also consider the bank’s notable domestic franchise, reasonable financial metrics, solid capital ratios and adequate liquidity buffer in light of upcoming wholesale debt maturities, the agency said.

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