41830
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 ...

Mental Health Investment: The Economic Case
The link between mental health and economic productivity is...
Bloom and billet sales made up the lion’s share of KSC’s sales.
Iran’s largest steel exporter Khouzestan Steel Company...
IZMDC’s Zinc Output Tops 8,000 tons
Iran Zinc Mines Development Company’s subsidiaries produced a...
Carmakers Pile Into Europe Scrappage Offers
Renault-Nissan and Kia are the latest car companies to launch...
Banks will now draft a single set of balance sheets that adhere to CBI’s IFRS-based templates.
Minister of Economic Affairs and Finance Masoud Karbasian and...
Ikarus buses were popular in Iran during 1990s.
Hungarian bus manufacturer Ikarus is set to re-enter Iran...
Plan to Make Home Loans More Affordable
The administration of President Hassan Rouhani is mulling new...
IRICA Chief  in Turkey
Foroud Asgari, the new head of the Islamic Republic of Iran...

Trending

Googleplus