BAKU, Azerbaijan, May 3
By Klavdiya Romakayeva - Trend:
Fitch Ratings, the international rating agency, has assigned the senior unsecured Eurobonds of UzAuto Motors (UAM) in the amount of $300 million, maturing in 2026, with a final senior unsecured rating of B + / stable, Trend reports referring to Fitch Ratings.
According to Fitch, the asset recovery rating amounts to 50 percent.
It was noted that the Eurobonds are on a par with all other unsubordinated and unsecured UAM bonds. The proceeds from bonds are used by UAM for general corporate purposes.
Since UAM is the dominant car manufacturer in Uzbekistan, Fitch has applied specific rating criteria to the company, which are intended for government-related companies.
It is reported that Fitch assessed the linkage between UAM and its sole indirect shareholder, Uzbekistan, at BB- / stable, moderate to strong. This, in turn, led to a decrease in Uzbekistan's rating by one position.
In addition, Fitch rates UAM's Autonomous Credit Profile (SCP) at 'b'.
In February 2021, it was reported that Fitch expects credit growth in Uzbekistan to reach 30 percent. Fitch said that at the end of 2020, state-owned banks accounted for 85 percent of the assets of the entire sector. If seven banks are privatized in Uzbekistan, then the share of state-owned banks will decrease by 35 percent.
Also, Fitch experts said then the repayment of external borrowings will be manageable for most banks in 2021-2022, since the maturities are tied to the schedules of the financed loans, which are still in grace periods.
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