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S& P suspends Uzbek Samarkand Bank’s ratings because of lack of information

Uzbekistan Materials 15 June 2013 12:49 (UTC +04:00)
Standard & Poor's Ratings Services said today it had revised its outlook on Uzbekistan-based Samarkand Bank to stable from positive and affirmed its 'CCC/C' long- and short-term counterparty credit ratings on the bank, S& P said today.
S& P suspends Uzbek Samarkand Bank’s ratings because of lack of information

Uzbekistan, Tashkent, June 13 / Trend, D. Azizov /

Standard & Poor's Ratings Services said today it had revised its outlook on Uzbekistan-based Samarkand Bank to stable from positive and affirmed its 'CCC/C' long- and short-term counterparty credit ratings on the bank, S& P said today.

S& P suspended the ratings on Samarkand Bank because of a lack of timely information to maintain appropriate surveillance.

"The outlook revision reflects our view of the now reduced probability of an upgrade of Samarkand Bank, given that the flow of information from the issuer is insufficient," the statement said.

In particular, S&P has not received Samarkand Bank's recent financial statements or any other information related to the bank's current or prospective activities.

S&P may reinstate the ratings on Samarkand Bank after the receipt and analysis of the information S&P needs to maintain the ratings, and if S&P believes such information will be supplied on an ongoing basis.

"If we do not receive sufficient and reliable information to maintain surveillance on the ratings within the next six months, we will withdraw the ratings," the statement said.

'CCC / C' ratings with a positive outlook were assigned to the bank in May 2012. They reflected a basic level of rating "b +", as well as a weak business position, very strong capitalization and profitability indices, a weak risk position, funding rates below the average level and adequate liquidity.

A "positive" outlook reflected the service's expectations that the business position of the bank and its ability to generate profit will gradually improve after receiving a license to conduct the foreign exchange transactions and the bank will maintain adequate liquidity and strong capital indices for at least 1.5-2 years.

"Samarkand" Bank was established in December 2000 as a private closed joint-stock commercial bank. It was transformed into an open joint-stock commercial bank in October 2008. The main office is located in Samarkand.

As of early 2011, the bank's assets amounted to 36.1 billion soums. The authorized capital hits 21.9 billion soums. More recent data is not available.

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