Fitch Assigns Turonbank ‘BB-’ Rating with Stable Outlook

Tashkent, Uzbekistan (UzDaily.com) — Fitch Ratings has assigned long-term Issuer Default Ratings (IDR) of ‘BB-’ with a Stable Outlook to JSCB Turonbank in both foreign and local currency.

The rating reflects a moderate probability of government support, as Turonbank is state-owned and actively involved in implementing government programs.

At the same time, Fitch noted the bank’s vulnerabilities due to its small size, the volatile local operating environment, limited profitability, and significant reliance on wholesale funding.

Turonbank holds only 2% of the assets in Uzbekistan’s banking sector and primarily lends to corporate clients as well as small and medium-sized enterprises.

Non-performing loans (NPLs) accounted for 4% of the gross portfolio at the end of 2024 and are fully covered by provisions, with Stage 2 loans adding another 9%. A high level of dollarization (57%) further increases risk, although half of the foreign currency exposure is backed by government guarantees.

Fitch emphasized that the operating environment for banks in Uzbekistan is strengthening, which should support business growth and improve Turonbank’s profitability. As of the end of the third quarter of 2025, liquid assets cover all upcoming external debt payments for the year, and the Fitch Core Capital (FCC) ratio stands at approximately 10%.

The rating could be downgraded if Uzbekistan’s sovereign rating declines, the likelihood of government support decreases, NPLs rise, or the bank experiences losses. An upgrade is possible if asset quality improves, profitability grows, and core capitalization strengthens.

Turonbank plans to increase its share of commercial lending and will continue to receive state capital injections to support targeted programs.