Standard & Poor’s upgrades ratings of 2 Uzbek banks
BAKU, Azerbaijan, Oct. 26
By Fakhri Vakilov-Trend:
Standard & Poors’ Global Ratings raised its long-term issuer credit ratings to 'BB-' from 'B+' on two Uzbekistan-based banks: Uzpromstroybank and Ipoteka Bank JSCM, Trend reports citing the rating agency.
The outlooks are stable.
Moreover, S&P affirmed 'B' short-term issuer credit rating on both banks.
S&P expect that Uzpromstroybank and Ipoteka Bank will receive substantial government support by year-end 2019 through the conversion of certain loans of Uzbekistan’s Fund for Reconstruction and Development (UFRD) into capital and transfer of foreign-currency denominated loans to UFRD.
“We believe this support, provided under a recent presidential decree, will significantly boost banks' capitalization, reduce balance-sheet dollarization, and improve profitability,” S&P reported.
S&P stated that the outlooks are stable because the agency expects the forthcoming government support and the banks' continuing involvement in a number of state-sponsored programs will support their credit profiles over the next 12-18 months.
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