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MOODY'S ASSIGN E+ BANK FINANCIAL STRENGTH RATING TO UNIBANK
PanARMENIAN.Net
June 7, 2010 - 17:19 AMT 12:19 GMT
On 3 June, 2010Moody's Investors Service has assigned a bank financial
strength rating (BFSR) of E+ to Armenia's Unibank CJSC, as well as
Ba3 long-term and Not-Prime short-term global local currency deposit
ratings and Ba3 long-term and Not-Prime short-term foreign currency
deposit ratings.
The outlook on all ratings is stable. "The ratings take into account
the bank's good franchise strength, which is enhanced by the exclusive
right to operate the Unistream money transfer system, representing
a 50% stake of the lucrative money transfer business in Armenia,"
says Stathis Kyriakides, AVP-Analyst and lead analyst for Armenian
banks at Moody's office in Limassol.
The system is the proprietorship of the Russian Unistream bank,
majority owned by Unibank's ultimate beneficial owners. Given that
remittances constitute 20% of Armenia's GDP, Moody's believes that the
success of the Unistream system in penetrating the Armenian market
enhances Unibank's franchise value and brand awareness. The bank's
dominant presence in the money transfer business affords it good access
to primary deposits and offers cross-selling opportunities. The
bank exhibits good capitalisation ratios following successive
capital injections (the most recent in March 2010) which enables
it to withstand some deterioration in asset quality, Unibank press
service reported.
From: A. Papazian
PanARMENIAN.Net
June 7, 2010 - 17:19 AMT 12:19 GMT
On 3 June, 2010Moody's Investors Service has assigned a bank financial
strength rating (BFSR) of E+ to Armenia's Unibank CJSC, as well as
Ba3 long-term and Not-Prime short-term global local currency deposit
ratings and Ba3 long-term and Not-Prime short-term foreign currency
deposit ratings.
The outlook on all ratings is stable. "The ratings take into account
the bank's good franchise strength, which is enhanced by the exclusive
right to operate the Unistream money transfer system, representing
a 50% stake of the lucrative money transfer business in Armenia,"
says Stathis Kyriakides, AVP-Analyst and lead analyst for Armenian
banks at Moody's office in Limassol.
The system is the proprietorship of the Russian Unistream bank,
majority owned by Unibank's ultimate beneficial owners. Given that
remittances constitute 20% of Armenia's GDP, Moody's believes that the
success of the Unistream system in penetrating the Armenian market
enhances Unibank's franchise value and brand awareness. The bank's
dominant presence in the money transfer business affords it good access
to primary deposits and offers cross-selling opportunities. The
bank exhibits good capitalisation ratios following successive
capital injections (the most recent in March 2010) which enables
it to withstand some deterioration in asset quality, Unibank press
service reported.
From: A. Papazian