Fitch Assigns Ipoteka-Bank’s Debut Eurobonds Final ‘BB-’ Rating

Tashkent, Uzbekistan (UzDaily.com) -- Fitch Ratings has assigned Ipoteka-Bank’s US$300 million 5.5% debut Eurobond placement due in 2025 a final rating of ‘BB-’. The bank is using the proceeds mainly for extending foreign-currency facilities to local borrowers in Uzbekistan.

The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is the same as the expected rating assigned to the unsecured notes on 9 November 2020.

The rating of the notes is in line with Ipoteka-Bank’s Long-Term Issuer Default Rating (IDR), given that the bonds represent unconditional senior unsecured obligations of the bank and rank pari passu with other senior unsubordinated creditors.

The ‘BB-’ IDR of Ipoteka is driven by Fitch’s view of a moderate probability of support from the government of Uzbekistan (BB-/Stable). This view considers Uzbekistan’s moderate ability to provide support as well as a high propensity to support Ipoteka based on its majority state ownership, as well as the potentially low cost of support relative to the sovereign’s foreign-currency reserves, and a record of support for the country’s public-sector banks that dominate the banking sector.