Moody’s upgrades Xalq Bank’s int’l rating in Azerbaijan

BAKU: International rating agency Moody’s Ratings, having analyzed the results of Azerbaijani Xalq Bank for 2023, has upgraded the Baseline Credit Assessments to b1, Trend reports.

The rating agency upgraded the bank’s long-term deposit rating in local and foreign currency to Ba3, and its short-term and long-term counterparty risk rating (CR Assessments) in local and foreign currency to Ba2/NP, confirming the bank’s rating outlook as “stable”.

Moody’s experts attribute BCA’s b1 rating to its ability to generate healthy returns before provisioning, providing a strong capital position with a TCE/RWA of 16.1 percent at end-2023, a stable deposit portfolio, and a solid funding profile formed by low market dependence, as well as a high liquidity buffer (24 percent of assets at end-2023).

The information states that the Ba3 rating of long-term local and foreign currency deposits is due to the bank’s large loan and deposit market share.

The rating agency also expects the bank to maintain strong fundamentals on i
ts long-term deposit ratings over the next 12-18 months.

To note, one of the country’s leading banks, Xalq Bank, which celebrates its 20th anniversary this year, continues to implement its development strategy for 2024-2026. Within three years, Xalq Bank will aim for healthy and sustainable growth in the market by implementing high standards of corporate governance as a customer-oriented, universal, and technology-driven bank.

Information on Xalq Bank’s products and services is available at the bank’s branches, on the bank’s official website,, at the 138 Information Center, and on the bank’s social media pages.

Moody’s Ratings evaluates debt securities across various bond market segments. These encompass a wide range of investments, such as government, municipal, and corporate bonds, as well as managed investments like money market funds and fixed-income funds. Additionally, financial institutions like banks and non-bank finance companies, along with various asset classes in struct
ured finance, are also part of this diverse landscape.

Source: Trend News Agency

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