The international rating agency Moody's Ratings has reaffirmed the long-term deposit rating of Converse Bank at Ba3, changing the outlook from 'stable' to 'positive'. At the same time, all of the bank's existing ratings have been reaffirmed, including the ba3 Baseline Credit Assessment (BCA) and Adjusted BCA ratings.
The change in the rating outlook followed the change in the sovereign rating outlook of Armenia from 'stable' to 'positive' and reflects Moody's assessment of the improvement in the country's macroeconomic and political environment.
According to Moody's, the 'positive' outlook for Converse Bank's long-term deposit rating is driven by the improved ability of the Armenian government to support the banking system and large banks if necessary, as well as the continued strengthening of the business environment in the banking sector.
Additionally, the agency, reaffirming Converse Bank's ba3 BCA rating, noted that the bank will maintain its strong financial positions over the next 12-18 months.
Moody's assessment of Converse Bank's ba3 BCA rating is based on the bank's ability to absorb losses, stable funding structure, high liquidity, and level of capitalization.
The Moody's publication is available here:
Converse Bank is regulated by the Central Bank of Armenia.
