Fitch Ratings assigns upcoming issue of Uzbekistan’s senior unsecured Eurobonds

Finance Materials 9 April 2021 14:09 (UTC +04:00)
Fitch Ratings assigns upcoming issue of Uzbekistan’s senior unsecured Eurobonds

BAKU, Azerbaijan, April 9

By Jeila Aliyeva - Trend:

Fitch Ratings has assigned Uzbekistan’s Ipoteka-Bank's upcoming issue of Uzbekistan’s senior unsecured Eurobonds an expected long-term rating of 'BB-(EXP)'/'RR4', Trend reports citing Fitch Ratings.

The issue will be denominated in Uzbekistan soums, but all settlements will be in the US dollars and have a 3-year maturity, said the message.

“The expected rating is in line with Ipoteka's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'BB-', as all settlements will be in US dollars. The notes will represent direct, unconditional and senior unsecured obligations of the bank, which rank pari passu with its other senior unsecured obligations,” noted the message.

According to the report the 'BB-' IDR of Uzbekistan’s mentioned bank is determined by Fitch's view of the government’s moderate probability of support.

“This view considers Uzbekistan's moderate ability to provide support as well as a high propensity to support Ipoteka based on its majority state ownership, the potentially low cost of support relative to the sovereign's foreign-currency reserves, and a record of support for the country's public sector banks that dominate the banking sector,” added the message.

Earlier, Fitch said that Uzbekistan demonstrates resilience to the impact of the coronavirus pandemic, fueled by good external and fiscal buffers, access to external financing and a diversified economy.

According to Fitch, Uzbekistan was one of the few countries to avoid a contraction in 2020, as timely support from official lenders bolstered anti-crisis measures. In addition, high gold prices were favorable for exports, government finances and international reserves.

Fitch Ratings maintained Uzbekistan's long-term foreign currency issuer default rating at 'BB-' with a Stable outlook throughout 2020, with the most recent confirmation of the rating in October.

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