S&P revises outlook on Uzbek Ravnaq-bank to positive
Tashkent, Uzbekistan, Dec. 19
By Demir Azizov – Trend:
International Standard & Poor's Global Ratings (S&P) revised its outlook on Uzbekistan’s Ravnaq-bank to positive from stable, the rating agency said in a message.
S&P also affirmed out ‘CCC+’ long-term and ‘C’ short-term credit ratings on the bank.
The outlook revision from stable to positive reflects S&P’s view that Ravnaq-bank has demonstrated clear signs of business recovery since the regulator authorized a foreign currency license for the bank almost a year ago, the message says.
S&P analysts believe the bank will likely be able to continue expanding its client base, while diversifying its business profile and improving earnings capacity.
“During the first nine months of 2016, Ravnaq-bank increased its client base by one-third to almost 22,000 clients. This growth is approximately two times greater than in 2015, when the bank was operating without a foreign currency license,” says the message.
“The positive outlook on Ravnaq-bank incorporates our view that over the next 12 months the bank will likely sustain positive developments in funding and continue expanding its customer base and strengthening its franchise,” reads the S&P message.
The rating agency may consider a negative rating action if it observes signs of regress in the bank's business profile and deterioration in its funding and liquidity metrics, according to the S&P message.
Ravnaq-bank was founded in Tashkent in 2001.
By the end of 2015, the bank’s assets amounted to 93.7 billion soums, its credit portfolio being 44.3 billion soums and its equity capital being 20.1 billion soums, according to the bank’s data.