Fitch Ratings has affirmed Azerbaijan-based Expressbank Open Joint Stock Company’s (EB) long-term Issuer Default Rating (IDR) at ‘B’ with a Stable outlook.

Fitch said in a report that it had withdrawn the Support Rating of ‘5’ and the Support Rating Floor of ‘No Floor’ on EB as they were no longer relevant to the agency’s coverage following the publication of our updated Bank Rating Criteria on 12 November 2021.

“The ratings of EB reflect its limited franchise (with a market share of 1.6 percent by gross loans) in the cyclical and oil-dependent Azerbaijani operating environment, recent expansion into a fairly new segment of consumer lending after lumpy related-party loans were repaid in 2019, a steady shrinkage of the interest spread due to intensified competition in the Azerbaijani banking industry and earnings volatility over recent years,” Fitch said.

“However, these risks are mitigated by the bank’s solid capital and liquidity buffers, providing EB with a reasonable safety margin.”