Uzbekistan, Tashkent, April 28 / Trend D.Azizov /
Moody's Investors Service has downgraded the local currency deposit ratings of four Uzbek banks, the Moody's said on Saturday.
The Moody's downgraded long-term local currency deposit ratings of National Bank of Uzbekistan and Asaka Bank to B1 from Ba3, long-term local currency deposit rating of Ipoteka Bank and Qishloq Qurilish Bank to B2 from B1.
The rating agency also confirmed the B1 long-term local currency deposit rating of Alokabank with stable outlook.
"The Not Prime short-term local and foreign currency deposit ratings of the above-named Uzbek banks, and their B2 long-term foreign currency deposit ratings were not subject to Moody's review, and are unaffected by today's announcement," the press release says.
According to information, these rating actions followed the review of the affected banks' ratings -- initiated on 1 February 2012 -- which was prompted by Moody's view on the need to re-assess the level of government support provided to systemically important banks in Uzbekistan.
Moody's says although the government's support to state-owned and systemically important institutions is generally forthcoming in the event of need, such support may be not always sufficient and/or timely. Moreover, the government's policy response towards supporting state-owned banks has been at times unpredictable, and in some cases lacked transparency.
These issues surfaced recently following developments at two large state-controlled institutions -- the National Bank of Uzbekistan and Agrobank, whose ratings were downgraded in December 2011 and because of this were not subject to revision.
According to Moody's, National Bank of Uzbekistan reported total assets of $4.5 billion, total shareholders' equity of $470 million and net income of $18 million as at 31 December 2011 -- under Uzbek local accounting standards (unaudited).
Asaka Bank reported total assets of $1.937 billion, total equity of $234 million and net income of US$22.3 million as at 31 December 2011 -- under audited IFRS.
Ipoteka Bank reported total assets of $838 million and total shareholders' equity of $77 million as at 31 December 2011 -- under audited IFRS.
Qishloq Qurilish Bank reported total assets of $675 million and total shareholders' equity of US$116 million as at 31 December 2011 -- under Uzbek local accounting standards (unaudited).
Alokabank reported total assets of $265 million, total equity of $41.8 million and net income of $5.1 million -- under audited IFRS.