Moody's on March 14 upgraded the baseline credit assessment and adjusted baseline credit assessment of Joint Stock Commercial Mortgage Bank Ipoteka Bank to "b2" from "b3."
The agency also upgraded the Uzbekistan-based bank's long-term local-currency deposit rating to B1 from B2.
At the same time, the agency affirmed Ipoteka Bank's B2 long-term foreign-currency deposit rating, Not Prime short-term local- and foreign-currency deposit ratings, B1/Not Prime long- and short-term local- and foreign-currency counterparty risk ratings, and B1(cr)/Not Prime(cr) long- and short-term counterparty risk assessments.
The outlook on the long-term deposit ratings is stable.
The upgrade of the bank's baseline credit assessment and adjusted baseline credit assessment reflects the proven resilience of the bank's solvency metrics to the effects of local currency devaluation in September, 2017, consistent measures to attract capital from external sources, and its stable funding and liquidity profile.
Moody's assumes a higher probability of government support for Ipoteka Bank, resulting in the upgrade of its long-term local-currency deposit rating.