Moody's Upgrades Ratings of 16 Uzbekistan Banks

Tashkent, Uzbekistan (UzDaily.uz) — The international rating agency Moody's Ratings on 1 July 2026 revised the ratings of 16 banks in Uzbekistan. The actions followed an upgrade of the country's sovereign rating to Ba2 with a stable outlook, as well as a revision of the country macro profile from "Weak-" to "Weak," reflecting an improvement in the operating environment for Uzbek banks.

According to the agency, the strengthening of the country's institutions and the development of banking supervision and regulation reduce the risk of unexpected defaults and volatility in the sector. Uzbekistan's real GDP growth has averaged around 6.5% over the past three years, and Moody's expects this pace to remain at 6.0% to 6.3% in the medium term. Lower inflation combined with steady economic growth will support loan demand and improve the creditworthiness of bank clients.

The most significant changes affected several of the country's largest banks. The National Bank of Uzbekistan (NBU) saw its long-term deposit ratings upgraded to Ba2 from Ba3, while its baseline credit assessment (BCA) improved to ba3 from b1. In 2025, the bank generated a net profit of 2.8 trillion soums with a return on tangible assets of 1.9%.

Xalq Bank achieved improvements in its key financial indicators: the share of problem loans decreased from 13.7% in 2024 to 5.2%, its capital adequacy ratio rose from 13.7% to 18.8%, and net profit reached a record 1.3 trillion soums. The agency raised the bank's long-term ratings to Ba2 from Ba3, and its BCA to b1 from b2.

Kapitalbank received a long-term deposit rating upgrade to Ba3 from B1, and its BCA improved to ba3 from b1. The bank's return on tangible assets was 3.4% in 2025. Hamkorbank was also upgraded to Ba3 from B1 while maintaining a positive outlook. The bank recorded a net profit of 1.8 trillion soums and a return on tangible assets of 5%, keeping its share of problem loans at 2%.

SQB (Industrial and Construction Bank) received a rating upgrade to Ba2, and its BCA improved to b2 from b3. The agency noted that in 2026, the bank transferred an additional 10% of its shares to the National Investment Fund of Uzbekistan (UzNif), which successfully conducted an IPO on the London Stock Exchange, a move expected to strengthen the bank's position in international capital markets.

Agrobank and Asakabank maintained their BCAs at b2 while their long-term deposit ratings were upgraded to Ba2 with a stable outlook. Microcreditbank (MCB) also received a rating upgrade to Ba2, and its BCA improved to b2 from b3 against the background of a reduction in the share of problem loans from 15.2% to 12.3%.

Tenge Bank, a subsidiary of Kazakhstan's Halyk Bank, was upgraded to Ba2 with a b2 BCA, reflecting a high probability of support from the parent bank. Ipak Yuli Bank was upgraded to Ba3 with a ba3 BCA, recording a return on tangible assets of 3.2%.

Aloqabank and Business Development Bank (BDB) were upgraded to Ba3 from B1. BDB reduced its share of problem loans from 23.3% to 8.2% and returned to profitability after losses in 2024, recording a return on tangible assets of 1.4%.

The ratings of Asia Alliance Bank and InFinBank were affirmed at B1. For InFinBank, the outlook was improved from negative to stable. Octobank's ratings were affirmed at B3 with a stable outlook following the settlement of a lawsuit with Humans without credit losses for the bank. Garant Bank retained its Caa1 rating with a positive outlook, despite a loss of 27 billion soums at the end of 2025 and a high level of problem loans at around 14%.

According to Moody's, a sustained improvement in the financial performance of Uzbek banks could provide grounds for further rating upgrades within a 12 to 18-month horizon. Downward pressure on the ratings could arise in the event of a deterioration in the sovereign credit profile or a significant decline in the solvency or liquidity of the banks, which the agency does not currently expect.