Moody's Investors Service has assigned a B3 rating with a "Stable" outlook to the International Bank of Tajikistan (IBT).
Press release issued by the IBT says “this rating reflects the bank's stability and reliability, confirming its leading position in the financial market of Tajikistan.”
According to the press release, Moody's highlighted the significant progress made by the International Bank of Tajikistan in transforming its operations, as well as its high standards of asset and liability management. The B3 rating reportedly underscores the bank's ability to effectively manage current economic challenges and maintain a high level of client trust. Previously, the bank was also awarded an international rating of "a-" by MicroFinanza Rating (Italy), further affirming its stability and reliability.
The press release says that according to Moody's report, the bank demonstrates high efficiency in managing short-term liabilities and holds substantial liquid reserves. These factors enable the bank to be prepared for any financial challenges and maintain high asset quality despite challenging economic conditions. The bank's strict risk management and reliable credit policies contribute to maintaining a low level of non-performing loans.
The bank reportedly also shows successful results in increasing profitability through diverse income sources, including significant earnings from foreign currency operations. This indicates the bank's ability to generate profit even under market volatility. Special attention is given to environmental, social, and governance (ESG) aspects, which contribute to long-term sustainability and a positive impact on society.
The press release notes that the B3 rating with a ‘Stable’ outlook from Moody's confirms the financial stability and reliability of the International Bank of Tajikistan. This rating reportedly opens new opportunities for international cooperation and attracting investments, strengthening the bank's position as one of the leading financial institutions in the country.
The rating assigned by Moody's Investors Service emphasizes the International Bank of Tajikistan's strong financial foundation and its ability to navigate economic uncertainties, the press release says, noting that with this rating, the bank is well-positioned to pursue further growth and development, fostering greater confidence among international investors and partners.
The Closed Joint-Stock Company (CJSC) “The International Bank of Tajikistan” that was established in April 2014 as the microfinance organization “Standart Moliya” (Standard Finance), was upgraded into a commercial bank on February 29, 2016.
The Bank’s stakeholders reportedly include a private company and a group of nationals of Tajikistan.
The IBT, with headquarters in Dushanbe, currently has eighteen branches and fifteen banking service centers in several districts and cities across the country.
The Bank now works with international payment systems VISA and Union Pay and the national payment system Korti Milli.
Moody's Ratings, previously known as Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Ratings provides international financial research on bonds issued by commercial and government entities. Moody's, along with Standard & Poor's and Fitch Group, is considered one of the Big Three credit rating agencies. It is also included in the Fortune 500 list of 2021.
An official website of Moody's Investors Service says the company on October 13, 2023 revised outlook on Tajikistan to stable and affirmed at "B3" (LT- foreign currency) credit rating. At the same time the rating agency revised outlook to ‘Stable’ from ‘Negative”.
‘B' ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.
Moody's assigns its B3 rating for “obligations considered speculative and subject to high credit risk.” Entities that receive this rating may be experiencing financial instability or hold inadequate cash reserves relative to their business needs, debt or other financial obligations.
A rating outlook may be 'Positive', 'Stable' or 'Negative'. A 'Positive' outlook indicates the rating may be upgraded; a 'Stable' outlook indicates the rating is likely to remain unchanged, while a 'Negative' outlook indicates the rating may be lowered.
