Fitch, the International Credit Rating Agency, has upgraded the long-term national credit rating of PASHA Bank, which offers corporate and investment banking services in the Turkey-Azerbaijan-Georgia triangle, from “BBB+” to “A-“, and designated its outlook as stable.
PASHA Bank, which offers investment and corporate banking products and services to contribute to the development of trade in the Turkey-Azerbaijan-Georgia triangle and to provide funds and guidance to the enterprises that invest in the region, continues its steady growth from 2015 onwards to 2020.
Fitch, the International Credit Rating Agency, has upgraded the long-term national credit rating of PASHA Bank from “BBB+” to “A-“. It stated that the reason for this upgrade was the strategic importance of PASHA Bank Turkey for its shareholders and the expectations that the shareholders’ strong financial support would continue as PASHA Bank operates in Turkey under the same brand. Included in the statement was also the fact that the balance sheet growth of the bank in recent years had been more than the sector average, the low ratio of the non-performing loans (2.6 % in June 2020), and a capital adequacy ratio that is good enough for a cushion against unexpected losses (25 % in June 2020).
“WE HAD SET FORTH TO BECOME THE FIRST BANK, TOP OF THE MIND BRAND IN THE REGION”
H. Cenk Eynehan, Member of the Board of Directors and the General Manager of PASHA Bank Turkey, stated he was pleased that in this difficult period of tough economic conditions, the Bank’s rating was upgraded from “BBB+” to “A-” and added: “Today’s rating increasing is the outcome of PASHA Bank Turkey’s sustainable growth strategy, and effective risk and balance sheet management. Our shareholders OJSC PASHA Bank and PASHA Holding LLC have encouraged us by their support with the capital increase as well as by their long-term financial support, and also by their confidence in Turkey when we were scaling our balance sheet since the incorporation.”
H. Cenk Eynehan also said “Since the year 2015, when we had set forth with the goal to become the first bank, top of the mind brand in the region, we tried to diversify our products and maturity terms. We serve our clients by focusing on corporate and investment banking, predominantly on project finance, sale and lease backs and issuance of asset-backed securities. Our Bank’s strong synergy with the other PASHA Group financial companies also helps us to get a share in the foreign trade and the investments between Turkey-Azerbaijan-Georgia.”
Having until today diversified its resource structure by issuing Turkish Lira bonds and lease certificates (Sukuk) at the domestic scale as well as issuing bonds in US Dollar and Euro in Azerbaijan, PASHA Bank have expanded its investment banking activities by investing in two venture capital funds and by helping an agricultural establishment by issuing asset-based securities to obtain funds form capital markets. PASHA Bank will continue to play its effective role in the capital market in the future period as well.