Fitch Ratings international ratings agency has assigned Ameriabank’s USD 15 mln 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.

According to Fitch, the senior debt rating of Ameria is aligned with the bank’s Long-Term Issuer Default Rating (IDR), as it represents direct, unsecured and unconditional obligation of the bank.

At the same time, the issue’s Recovery Rating of ‘RR4’ reflects average recovery prospects for noteholders in case of default.

Fitch indicates that Ameriabank’s Long-Term IDR of ‘B+’, which has a Stable Outlook, reflects the high dollarisation and concentration of Ameriabank’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,” Fitch stated.

According to Fitch, changes to Ameriabank’s Long-Term IDR would impact the issue’s rating. The bank’s credit metrics are highly reliant on the performance of the economy and stability of the local currency.

The agency’s rating will downgrade, if deterioration in the domestic economy results in the weakening of the bank’s asset quality or capitalisation.

At the same time, rating upgrade is possible if improvement of the country’s economic prospects would be supportive of the bank’s credit profile, although Fitch considers an upgrade to be unlikely in the medium-term.