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Moody's Assigns Ardshininvestbank GLC Deposit Rating And BFSR

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  • Moody's Assigns Ardshininvestbank GLC Deposit Rating And BFSR

    MOODY'S ASSIGNS ARDSHININVESTBANK GLC DEPOSIT RATING AND BFSR

    arminfo
    2008-07-30 14:37:00

    ArmInfo. Moody's Investors Service on 25 July, 2008 assigned Ba1
    long-term and Not Prime short-term global local currency deposit
    ratings to Armenia's Ardshininvestbank ("ASHIB"), as well as Ba3
    long-term and Not Prime short-term foreign currency deposit ratings
    and a bank financial strength rating ("BFSR") of "D-". The outlook
    on all ratings is stable.

    Ardshininvestbank press-service told ArmInfo ASHIB's "D-" BFSR --
    which maps to a Baseline Credit Assessment of Ba3 - derives from its
    good franchise as one of Armenia's largest banks (ranking second in
    terms of assets with a 12.2% market share as at YE2007 -- reportedly
    moving up to first place by March 2008 - 12.8% of aggregate assets
    in the market) and good financial metrics, particularly, buoyant
    profitability, solid capitalisation and above-average efficiency
    ratios, within the Armenian context.

    ASHIB's long-term local currency deposit rating of Ba1 is based on
    Moody's assessment that the probability of systemic support for the
    bank (using Armenia's local currency deposit ceiling of Baa1) in the
    event of need is high. Hence, this rating enjoys a two-notch uplift
    from the bank's Ba3 Baseline Credit Assessment.

    ASHIB's Ba3/Not Prime foreign currency deposit ratings are constrained
    by Armenia's foreign currency deposit ceilings and would move up in
    tandem with any upgrades of this ceiling -- up to the level of the
    bank's global local currency deposit ratings, currently Ba1/Not Prime.

    Aram Andreasyan, Chairman of Ardshininvestbank's Management Board,
    said: "Acquiring ratings from Moody's Investors Service is an important
    event for our bank and a necessary step in our development.

    This will help us attract funds from international capital markets
    and will give us an opportunity to further develop our relationship
    with existing and new investors/customers, both abroad and in Armenia".

    Founded in 2003, Ardshininvestbank is one of the largest and most
    successful banks in Armenia. Based on the financial report as of
    June 30, 2008, Ardshininvestbank is the leading bank in the country
    in terms of loan portfolio and profitability (with a net profit of
    over $8 million YTD). Its total assets reached nearly $360 million,
    and its equity reached about $70 million. The bank is universal and
    has one of the country's largest branch networks, with 55 branches
    and an office in Paris. It offers a wide range of financial products
    to its clients, and it is very active in corporate finance and trade
    finance operations.
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