Saman Bank Foreign Currency Rating ‘Positive’
Economy, Business And Markets

Saman Bank Foreign Currency Rating ‘Positive’

Capital Intelligence Ratings said Wednesday that it has affirmed Saman Bank’s Long- and Short-Term Foreign Currency Ratings (FCR) of ‘B’. At the same time, the Outlook on the Bank’s Long-Term FCR was changed to ‘Positive’ from ‘Stable’, reflecting CI Ratings’ expectations of a gradually improving operating environment in Iran.
Furthermore, the bank’s Financial Strength Rating (FSR) of ‘B’ was affirmed, and the outlook revised to ‘Positive’ from ‘Stable’, CPI Financial reported.
The Support Level remains at ‘4’, reflecting a moderate level of support in case of need. The ‘Positive’ outlook indicates that Saman Bank’s ratings could be raised to ‘B+’ within the next 12 months, , without negative impact on its risk and financial profile.
To consider an upgrade, CI Ratings would also expect to see a continuation of the gradual improvement in the bank’s asset quality metrics in the audited financial statements as of FYE 2016, and a stabilization of its capital position.
Conversely, significant deviations from above expectations, resulting in deterioration of major key credit metrics or unexpected deteriorations in the operating environment, could result in downward revision of the outlook or the ratings.
Saman’s FSR and FCRs of ‘B’ remain primarily constrained by weak capital adequacy, asset quality, and profitability as a result of an extremely difficult operating environment in Iran over the past several years.
The lifting of international economic and financial sanctions in January related to Iran’s nuclear program should gradually translate into a more positive operating environment for the banking sector in Iran and Saman. At the same time, CI Ratings expects that overcoming fundamental and structural weaknesses in the economy will take time.
The bank’s successful business model and market position in trade finance and retail banking, its solid and resilient deposit franchise, and avoidance of undue concentration risks remain key supporting rating factors.

Short URL : http://goo.gl/4hNACm
  1. http://goo.gl/SFa4Xl
  • http://goo.gl/TM13sb
  • http://goo.gl/s8yVkP
  • http://goo.gl/UMqACn
  • http://goo.gl/t49Xm3

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...