Azerbaijan's Unibank and Demirbank recently received a long-term foreign currency issuer default rating of "B" from Fitch Ratings.

Atabank, AGBank and Bank Technique, meanwhile, received "B-" ratings from the company.

Additionally, Unibank and Demirbank had their outlooks revised from positive to stable, while AGBank's outlook went from stable to negative. Atabank and Bank Technique remain listed as stable.

The changes come from the banks' largely stable credit metrics and high oil prices, which have led to a currently favorable broader economy. The rapid expansion in higher margin retail and micro-lending has also benefited the bottom lines of some banks, including Unibank and Demirbank.

All of the banks are facing capital pressure due to weak profit generation.

Unibank and Demirbank could see their status upgraded if they are able to defend their profitability and show an extended track record of reasonable asset quality. It is unlikely that Atabank, Bank Technique or AGBank will be able to improve their rating in the near term.