Fitch may cut BTA Bank

Fitch Ratings said it put JSC BTA Bank (Georgia)'s CCC long-term issuer default rating and C short-term issuer default rating on Rating Watch negative.

The watch reflects the heightened near-term liquidity risk faced by the bank in light of the maturing of funding facilities provided by BTA Bank, Fitch said.

Scheduled repayments by BTA Georgia to BTA Kazakhstan are greater than the liquid assets held by BTA Georgia as of mid-April, the agency said. To date, it has not been possible to obtain clarification from BTA Kazakhstan or BTA Georgia as to whether some or all of these funding facilities might be extended, the agency said.

Other risks for BTA Georgia, in common with other Georgian banks, are asset quality deterioration in a challenging operating environment and the high proportion of foreign-currency lending, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.