S&P Confirms “BB-/B” Ratings for Uzpromstroybank with Stable Outlook

Tashkent, Uzbekistan (UzDaily.com) — On 5 December, S&P Global Ratings confirmed the long-term and short-term credit ratings of JSC Uzpromstroybank at “BB-/B”, maintaining a stable outlook.

The agency views the bank’s recent AT1 note issuance as a hybrid capital instrument that will support the diversification of the bank’s long-term funding structure and will be included in the regulatory capital (TAC) under Uzbekistan’s legislation.

The $300 million (3.6 trillion soums) bond is perpetual, law-regulated, contains no step-up coupon mechanisms, and can absorb losses through coupon non-payment at the bank’s discretion. If necessary, the instrument is subject to a bail-in mechanism, including partial write-off or conversion into capital, only in the event of bank insolvency.

Following the AT1 issuance and considering the projected 1.3 trillion soums profit for 2025, the bank’s total regulatory capital is forecast at 13.8 trillion soums, up from 9.8 trillion soums as of June 30, 2025. S&P estimates that the AT1 note will comprise up to 33% of adjusted capital and expects the RAC ratio to increase to 8.5–8.8% by the end of 2025, up from 6.6% at the end of 2024.

The stable outlook reflects the agency’s view of the bank’s strong market position in Uzbekistan and gradual improvement in asset quality. A negative rating action could occur if asset quality deteriorates or the balance sheet grows excessively, lowering the RAC ratio below 7%.

A positive rating action could result from strengthened capitalization and a sustained increase in the RAC ratio above 10%.