Moody’s upgrades outlook on Moscow-based International Investment Bank (IIB) to positive

Moody’s upgrades outlook on Moscow-based International Investment Bank (IIB) to positive
By bne IntelliNews May 10, 2017

Moody’s Investors Service upgraded the outlook on the Baa1 issuer and debt rating of the International Investment Bank (IIB) from stable to positive, the bank said in a press-release on May 10.

The positive rating action is driven by “the increased diversification of the IIB’s loan portfolio and the maintenance of relatively strong asset quality”, as well as “the improved credit quality of the IIB’s treasury portfolio” and “the increased diversification of its funding sources.”

Previously in 2014 Moody’s downgraded the IIB from A3 to Baa1 due to worsening prospects in Russia. In December 2016 Fitch upgraded the outlook on IIB ratings to stable.

The Moscow-based International Investment Bank (IIB) increased its loan portfolio under IFRS by 21% year-on-year to €381mn as of the end of 2016, the bank said on March 20. IIB's assets grew by 9% to €881mn, due to the increase in corporate lending, while the bank's net profit made €0.8mn.

The bank, founded in 1970 and modernised in late 2012, has as its current shareholders Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam. IIB is rated 'BBB' (outlook stable) by S&P, 'Baa1' (outlook stable) by Moody’s, 'BBB' (outlook stable) by Fitch and 'A' (outlook stable) by Dagong.

In the 2016 IFRS report the bank said its loan portfolio reached "record diversification covering 14 different sectors" and posting an increase year-on-year. The share of Central and Eastern European countries reached 36% in the loan portfolio. Specifically, Russia had a 23% share, Bulgaria 17%, Mongolia 14%, Romania 11%, Czech Republic 6%, Vietnam 5% and Slovakia 2%.

The bank's capital as of the end of 2016 reached €313mn, with Russia's share in the capital at 47.92% and the combined share of the bank's EU shareholders (Czech Republic, Slovakia, Hungary, Romania and Bulgaria) at 48.72%. Tier 1 capital adequacy ratio was 52%.

Related Articles

Azerbaijan's IBA sees assets fall 29% y/y in 2017 after debt restructuring

The assets of the International Bank of Azerbaijan (IBA), the largest lender in the country, contracted by 28.9% y/y to AZN8.7bn ($5.1bn) in 2017, the state-controlled bank reported on January 10. ... ... more

IMF sees economic recovery in Iranian non-oil sectors but urges shoring up of banking system

Iran’s economy is starting to recover more rapidly from years of international sanctions but the country urgently needs to shore up its banks, a senior International Monetary Fund official told ... more

Kazakhstan’s Bank of Astana SPO to be first ever placement of foreign bank on Moscow Stock Exchange

Kazakhstan’s Bank of Astana (Astana Banki) plans to conduct a secondary offering of shares (SPO) on the Moscow Stock Exchange, RNS news agency reported last week. Bidding will begin on December 14. ... more

Dismiss