S&P Global Ratings announces Uzbek Ravnaq-bank's credit rating

Uzbekistan Materials 8 December 2021 15:09 (UTC +04:00)
S&P Global Ratings announces Uzbek Ravnaq-bank's credit rating

BAKU, Azerbaijan, Dec.8

By Natavan Rzayeva - Trend:

S&P Global Ratings company has affirmed the long-term credit rating of the issuer of Uzbekistan's Ravnaq-bank at 'B-', Trend reports via the press services of the company.

The rating outlook remains negative, which means that the bank still has a high volume of non-performing loans, low-profit margins, high concentration of the loan portfolio, and volatility of liquidity indicators.

According to S&P, it is expected that the capitalization indicators of Ravnaq-bank will decline due to the low profitability of core activities and increased requirements for reserves.

At the same time, S&P noted a gradual improvement in the bank's asset quality indicators, supported by the repayment of non-performing loans and limited growth of new problem assets.

In addition, it was noted that the bank is taking an opportunistic approach to liquidity management, although its liquidity indicators are now more stable than in previous months.

Low profitability indicators of Ravnaq-bank and the need to create reserves for possible loan losses have a negative impact on the bank's capitalization indicators.