S&P places Uzbek bank on CreditWatch Positive list
Baku, Azerbaijan, July 30
By Fakhri Vakilov - Trend:
S&P Global Ratings has placed a 'B+' long-term issuer credit rating on Uzpromstroybank on CreditWatch with positive implications due to possible capital investment, Trend reports with reference to the rating agency.
Furthermore, the agency confirmed the short-term credit rating of the issuer of the bank at the “B” level, said the message.
“We believe there is a high likelihood that in the next two to three months, Uzpromstroybank’s key shareholder--the Uzbekistan Fund for Reconstruction and Development (UFRD)--will provide the bank with capital support in the $250-$300 million range. We think that this injection could substantially improve the bank’s capital position and strengthen its creditworthiness,” the agency stated.
S&P noted that they intends to resolve the CreditWatch once they have more information on the amount and timing of the potential capital injection and - therefore - on the bank’s prospective capital position, which we expect will likely occur in the next two to three months, read the message.
Moreover, agency could raise the long-term issuer credit rating on Uzpromstroybank if the government agrees to increase its common shareholders equity by providing capital support, which would help the bank keep its Risk-Adjusted Capital (RAC) ratio above 7 percent over the next 12-18 months.
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