OREANDA-NEWS.  Fitch Ratings has placed International Bank of Azerbaijan's (IBA) Long-term foreign currency Issuer Default Rating and Viability Rating on Rating Watch Positive, said the message posted on the website of the agency.

The possible upgrade of the rating is connected with the buy-out of problem assets and IBA’s subsequent privatization.

Subsequent clarifications were made by the bank's management to Fitch that this will involve a substantial buy-out of problem assets at book value by the end of 2015.

If the clean-up is completed as planned, Fitch is likely to revise IBA's Support Rating Floor up to 'BB+' and upgrade the bank's support-driven Long-term Issuer Default Rating and senior debt rating by one notch to the same level, the bank said.

The Rating Watch Positive on IBA's Viability Rating reflects the potentially significant improvements in the bank's asset quality, capitalization and liquidity position after the asset buy-out. Fitch may upgrade IBA's Viability Rating by one or two notches, depending primarily on the quality of the bank's remaining assets and Fitch's view of the bank's risk appetite and lending strategy following the asset transfer and recent change in management.