Baku, Azerbaijan, Dec. 3
By Fakhri Vakilov -Trend:
Fitch Ratings has assigned Uzbek Industrial and Construction Bank's (UICB) $300 million 5.75 percent senior unsecured Eurobonds maturing in 2024 a final long-term rating of 'BB-', Trend reports with reference to Fitch.
The assignment of the final rating follows the completion of the issue on November 25, 2019 and receipt of documents conforming to the information previously received. The final rating is in line with the expected rating assigned on November18, 2019.
The issue's final rating is equalized with UICB's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR), which are driven by state support from Uzbekistan (BB-/Stable).
The terms of the final Eurobond prospectus include financial covenants relating to UICB's compliance with regulatory capital ratios and dividend payments. A put option (in case the state ceases to control at least 50 percent + 1 share of the bank's common stock) and a call option (which can be exercised by the issuer at any time prior to the maturity date) are also embedded.
The final Eurobond rating is sensitive to changes in UICB's Long-Term IDRs, which in turn will reflect any change in probability of state support for the bank.
Fitch will likely review its assessment of support probability from the state should UICB's privatisation plans change, resulting in minority state ownership or a much-diminished role for the bank, reducing its systemic importance, read the message.
---
Follow author on Twitter:@vakilovfaxri