CBA Re-Rates 9 Enterprises


Noyan Tapan
March 18, 2008

YEREVAN, MARCH 18, NOYAN TAPAN. The Central Bank of Armenia (CBA)
has re-rated nine enterprises. Pure Iron Plant OJSC received B+ rating
(previous rating B+), Eurotherm CJSC – B (B-), Yerevan Beer CJSC – B
(B-), Araratcement CJSC – C+ (C), Tamara LLC – C+ (B-), Mika Cement –
C (C-), Zovk Plant joint venture OJSC – C- (C-), MAP CJSC – C (C-),
and Champagne Wines Plant OJSC – C (previous rating C).

According to the CBA press service, the CBA assigns ratings to
enterprises by assessing the values of the qualitative indices of their
credit history, financial position and activity based on a five-point
system and then summarizing the results. The highest rating is A,
while the lowest one is F. Enterprises with a score of 4.9 and higher
receive A+ rating, those with a score of 4.75-4.9 receive A rating,
with a score of 4.6-4.75 – A- rating, with a score of 4.45-4.6 –
B+ rating, with a score of 4.25-4.45 – B rating, and enterprises
with a score of 4.1-4.25 receive B- rating. F rating is assigned to
enterprises with a score of 2 and lower.

During the signing of repo agreements with banks, the CBA is ready
to take as a security the bonds issued by enterprises with A, B and
C ratings. The CBA has established a privileged scale for weighing
the risks of banks’ assets – for credits given by commercial banks to
enterprises with a high rating, as well as for the purchase of bonds
of enterprises with a high rating by commercial banks. It encourages
banks to provide credits to enterprises with a high rating and to
buy their bonds.

34 Armenian companies have received ratings from B+ to D from the CBA.

From: Emil Lazarian | Ararat NewsPress

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS