Baku: S and P Global Ratings has affirmed the long-term and short-term issuer credit ratings of Azer-Turk Bank OJSC (ATB) at ‘B+/B’ and maintained a stable outlook, APA-Economics reports. The decision is grounded in the expectation that the bank’s financial and business indicators will largely remain unchanged while a new strategy is being formulated following SOCAR’s acquisition of a 51% stake in the bank. This acquisition was finalized in October 2025, with amendments made to the corporate registry and charter. Although new management has started operations, the position of Chief Executive Officer (CEO) remains vacant.

According to Azeri-Press News Agency, S and P notes that ATB is currently developing a strategy focused on transactional banking with SOCAR and lending to small and medium-sized enterprises in the non-oil sector. The agency plans to assess the strategy’s impact on the bank’s market position and profitability once it is announced. The rating agency forecasts that the bank’s capitalization and risk position will likely remain stable over the next 12 months. The risk-adjusted capital (RAC) ratio is projected to be between 6-7.5% in 2026, compared to 6.6% at the end of 2024. This indicator will depend primarily on the growth rate of the loan portfolio and potential capital support.

S and P also highlights that the share of non-performing loans may increase amid rapid credit growth in recent years. While the share of non-performing loans was 2.2% at the end of 2024, it rose to 3.2% by the end of September 2025 and could reach 4% over the next 12-24 months. This increase is mainly attributed to a deterioration in quality across corporate and consumer loans.

The agency considers ATB a non-strategic subsidiary for SOCAR, and thus does not factor in additional support from SOCAR in the ratings. With the government’s stake in the bank reduced from 75% to 24%, the likelihood of state support is also assessed as low.

S and P warns that the ratings could be downgraded if the new strategy adversely impacts the bank’s capitalization and asset quality, or if SOCAR’s ownership fails to provide tangible business benefits. The probability of a rating upgrade over the next 12 months is assessed as low.