Tashkent, Uzbekistan (UzDaily.com) -- Fitch Ratings has assigned Joint-Stock Commercial Mortgage Bank Ipoteka-Bank’s UZS785 billion 16% Eurobond placement due in 2024 a final rating of ‘BB-’. 

The issue is denominated in Uzbekistan soums, but all settlements are in US dollars using the exchange rate set by the Central Bank of Uzbekistan at each settlement date. The bank is using the proceeds mainly for extending local-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 7 April 2021.

The notes’ rating is in line with Ipoteka-Bank’s Long-Term Foreign Currency Issuer Default Rating (IDR), as all settlements are in US dollars. The notes represent direct, unconditional and senior unsecured obligations of the bank, which rank pari passu with its other senior unsecured obligations.

Ipoteka’s ‘BB-’ IDR 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.