Fitch Ratings affirms IBEC’s investment grade rating
On March 15, 2019 international credit rating agency Fitch Ratings-London affirmed previously assigned to International Bank for Economic Co-operation (IBEC) investment-grade ratings, namely: Long-Term Issuer Default Rating (IDR) at BBB-, with a Stable Outlook, and Short-Term IDR at ‘F3’.
Fitch Ratings notes that the Bank's redefined business profile is centered on trade finance, along with targeted lending and settlement operations to support foreign trade of entities operating in the Bank's member states. IBEC's 2018-2020 strategy envisages an aggressive increase in its financing activities. The loan book is expected to grow to about EUR 300 million at the end of 2020 from EUR 61 million at the end of 2017.
Fitch Ratings underlined Bank’s ‘excellent’ capitalization, considerable liquidity position and high solvency.
It is particularly noted that the superior credit quality of the new loans extended in 2018 combined with NPL write-off resulted in improved assessment of the Bank’s risk profile.
IBEC intends to sustain the positive trend in Bank’s development and will continue to move forward with the Updated Strategy. Bank will focus on geographically diversified portfolio building and ensuring prudent lending growth as well as effective credit risk management of the loan and treasury portfolios.