OREANDA-NEWS. Fitch Ratings has assigned Ameriabank's (Ameria) USD15m issue of fixed-rate senior unsecured notes a final Long-term rating of 'B+' and a Recovery Rating of 'RR4'. The bonds mature in July 2018 and have a coupon rate of 6.75% per annum.

KEY RATING DRIVERS

The senior debt rating of Ameria is aligned with the bank's Long-Term Issuer Default Rating (IDR) of 'B+', as it represents direct, unsecured and unconditional obligation of the bank. The issue's Recovery Rating of 'RR4' reflects average recovery prospects for noteholders in case of default.

Ameria's Long-Term IDR of 'B+', which has a Stable Outlook, reflects the high dollarisation and concentration of Ameria's balance sheet, and the bank's recent rapid credit growth in Armenia's fairly high-risk environment. It also factors in the bank's reasonable financial metrics, albeit under moderate pressure from a challenging operating environment, solid loss absorption capacity, adequate liquidity buffer and strong domestic franchise.

RATING SENSITIVITIES

Changes to Ameria's Long-Term IDR would impact the issue's rating. Ameria's credit metrics are highly reliant on the performance of the economy and stability of the local currency. Deterioration in the domestic economy, resulting in the marked weakening of the bank's asset quality or capitalisation, without sufficient support being provided by the bank's shareholders, may result in a rating downgrade. Improvement of the country's economic prospects would be supportive of bank's credit profile, although an upgrade is unlikely in the medium-term.