FITCH UPGRADES VTB ARMENIA’S RATINGS
ARKA
July 9
Fitch Ratings international credit rating company has upgraded
long-term ratings of VTB Bank (Armenia) in national and foreign
currencies from BB to BB +.
The bank maintained its short-term ratings in national and
international currencies at B, individual rating at D/E and support
rating at 3. Stability was forecasted for long-term ratings.
Earlier, the agency upgraded Armenia’s long-term ratings from BB- to BB
(stability forecasted) and the country ceiling rating from BB to BB+.
The statement issued by the agency says the ratings of VTB (Armenia)
show moderate possibility for getting support, if needed, from the
only stakeholder VTB Bank open joint-stock company (the second largest
bank in Russia).
Fitch believes that VTB will display strong interest in supporting
its Armenian daughter-bank, if needed.
However, the capacity of VTB (Armenia) to get and use this support
will be limited due to the country risks, namely, the transfer
and conversion risks as shown in the country ceiling ratings, the
statement reads.
VTB Bank Armenia (formerly Armenian Savings Bank) was founded in
1923. It used to be part of the USSR State Savings Bank before 1993,
later became the specialized savings bank of Armenia. 100% shares of
the VTB Bank Armenia belong to Russian VTB.
As of March 31 2008, the bank’s assets totalled AMD 84bln, total
capital – AMD 21.4bln, and the profit was estimated at 624.3mln. ($1 –
304.51 AMD)