AloqaBank Receives Another International Recognition
Moody’s Ratings has upgraded AloqaBank’s long-term deposit rating from B1 to Ba3. At the same time, the agency affirmed the Bank’s Baseline Credit Assessment (BCA) at b2 and its Adjusted BCA at b2. The outlook on the long-term deposit rating remains Stable.
According to Moody’s, the affirmation of the Bank’s b2 Baseline Credit Assessment (BCA) reflects expectations that improvements in the operating environment will enable AloqaBank to maintain its credit profile over the next 12 to 18 months. Continued government support, including capital injections and funding assistance, is expected to mitigate pressure on the Bank’s standalone credit profile. These pressures are primarily associated with lower profitability and rapid asset growth, which continue to place pressure on capital adequacy.
The upgrade of the long-term deposit rating from B1 to Ba3 reflects both the affirmation of the Bank’s b2 BCA and Moody’s assessment of a high likelihood of support from the Government of the Republic of Uzbekistan. This assessment is based on the Government’s direct and indirect ownership of more than 80% of the Bank, as well as AloqaBank’s important role in implementing government-directed lending programs.
As a result, the rating uplift attributable to expected government support has increased from one notch to two notches, becoming one of the key factors behind the upgrade of the Bank’s long-term deposit rating.
