TASHKENT, Uzbekistan, June 28. Fitch Ratings (a global credit rating agency) has assigned an expected long-term rating of 'BB-(EXP)' to Uzbekistan’s National Bank (NBU) for the upcoming issue of US dollar-denominated senior unsecured Eurobonds, Trend reports.
As per Fitch, the issue size, tenor and interest rate are yet to be determined. At the same time, according to the draft documentation, NBU plans to use the proceeds from this bond for general banking business.
The bank's expected long-term rating is in line with NBU's Long-Term Issuer Default Rating (IDR) of 'BB-'. Thus, the notes will represent unconditional, senior unsecured obligations of the bank, which rank pari passu with its other senior unsecured obligations.
"The bond draft documentation includes the change of control clause, under which bondholders will have an option to redeem the notes at par if the Republic of Uzbekistan ceases to beneficially own (directly or indirectly) 50 percent plus 1 share of NBU's issued and outstanding voting common shares," the agency noted.
Earlier, Fitch Ratings upgraded Uzbek National Bank’s viability rating (VR) to 'b+' from 'b' and affirmed the long-term foreign- and local-currency issuer default ratings (IDRs) at 'BB-' with stable outlooks.
The bank's rating is supported by its superior position in the local market, which is underpinned by an extended record of stable asset quality and high capitalization throughout the cycle.