Moodys Raises Long-Term Deposit Rating of Qishloq Qurilish Bank to B2
OREANDA-NEWS. July 30, 2009. Moody's Investors Service, an international rating agency, raised the level of long-term rating of deposits in national currency on global scale of Qishloq Qurilish (Agricultural Construction) Bank of Uzbekistan from B3 to B2.
Besides, the bank's financial stability rating has been approved at E+, long-term rating of deposits in foreign currency on global scale – at B3 and short-term rating of deposits in national and foreign currencies on global scale Not Prime kept at the same level. All ratings of the bank have "Stable" forecast.
The increase of the bank's rating followed the acquisition by Finance Ministry, and Reconstruction and Development Fund of Uzbekistan in the second quarter of 2009 of 69% shares of Qishloq Qurilish Bank. The change of the owner was followed by the bank's name change – it was renamed from Gallabank. Moreover, a new strategy of the bank aimed at support of agricultural construction was set.
"Moody's estimates highly the level of probability of gaining by the bank of support in case of necessity as a result of participation of the state in the bank's capital," chief analyst of the agency Elena Redko says.
"The agency's estimation is based on the government's plans on development of agriculture and agricultural construction being socially and economically important segments of the country's economy, and the role of QQB in the implementation of these plans in 2009/10," she noted.
QQB has already started the process of preparation of new products in cooperation with main construction and agricultural companies of the country for the fulfillment of the announced strategy. In order to implement this strategy the government will provide additional financing on preferential terms. The bank will be exempted from profit and property taxes payment till 2012. Also the bank will get the property objects belonging to the state for further use.
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