July 28, 2009 |
|BFSR affirmed at E+, short-term ratings affirmed at Not Prime|
Moscow, July 28, 2009 -- Moody's Investors Service has today upgraded the long-term global scale local currency deposit rating of Qishloq Qurilish Bank or QQB (formerly Gallabank) to B2 from B3. At the same time, QQB's
E+ bank financial strength rating (BFSR), B3 long-term global scale
foreign currency deposit rating and its Not Prime short-term global scale local and foreign currency deposit ratings were affirmed. All of the bank's ratings carry a stable outlook.
The upgrade follows the acquisition of a 69% stake in QQB by the Uzbek
state through the Ministry of Finance and the Fund for Reconstruction and
Development of Uzbekistan in Q2 2009. Accompanying the change of control,
QQB's name was changed from Gallabank and a new strategy of supporting
rural construction development was announced.
"In Moody's view, the state's ownership of QQB is likely to result in a
high probability of support from the parent, in case of need," says Elena
Redko, a Moody's Analyst and lead analyst for QQB. "This perception stems
from Moody's awareness of (i) the government's strategy for development
of the agriculture sector and rural construction as a socially and
economically important segment, and (ii) QQB's role constituting a
platform for implementation of these development plans in 2009-2010."
QQB has already initiated the development of new products on the back of
its cooperation with major construction and agriculture companies in line
with the government's strategy. The implementation of the strategy will
be supported by additional preferentially priced funding from the
government as well as income and property tax exemption till 2012 and
allocation of state property to the bank for further utilisation.
Moody's previous rating action on QQB was on 11 April 2008 when the
rating agency assigned a first-time ratings of B3/Not-Prime/E+ with
stable outlook to the bank (then trading under the Gallabank name).
The principal methodologies used in rating QQB are "Bank Financial
Strength Ratings: Global Methodology" and "Incorporation of
Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology",
which can be found at www.moodys.com in the Credit Policy & Methodologies
directory, in the Ratings Methodologies subdirectory. Other methodologies
and factors that may have been considered in the process of rating QQB
can also be found in the Credit Policy & Methodologies directory.
Headquartered in Tashkent, Uzbekistan, QQB reported total IFRS assets of
UZS171 billion (US$123 million) and net income of UZS5 billion (US$3.7
million) as at 31 December 2008.
Company: Qishloq Qurilish Bank
|Full company name||Qishloq Qurilish Bank|
|Country of risk||Uzbekistan|
|Country of registration||Uzbekistan|