Fitch Ratings has upgraded Viability Rating of NBU to 'b+'

The International Rating Agency “Fitch Ratings” (hereinafter referred to as “Fitch”) has upgraded the Viability Rating of Joint-Stock Company “National Bank for Foreign Economic Activity of the Republic of Uzbekistan” (hereinafter referred to as “NBU”) from ‘b’ to ‘b+’. NBU’s Long-Term Issuer Default Rating has been affirmed at ‘BB-‘ in both foreign and local currencies, with a “Stable” outlook.

According to Fitch’s analytical report, the rating upgrade reflects the bank’s successful transformation efforts aimed at strengthening its business processes and diversifying its operations.

Key factors that influenced the rating agency's decision:

· successful implementation of modern approaches to managing business processes, which has significantly enhanced operational efficiency;

· focus on developing commercially oriented sectors, including small and medium-sized businesses (SMEs), the private sector, and retail lending;

· regular improvement in asset quality and capitalization resilience.

Support for Transformation and New Business Strategy

NBU is actively diversifying its service portfolio: the share of state-owned enterprises in its operations is decreasing, while lending in the SMEs and retail segments is growing. In 2023 the bank demonstrated positive income dynamics, including a significant increase in revenue from foreign exchange operations.

Governmental support plays a crucial role in implementing the bank's strategic initiatives. However, the key driver of transformation is the focus on innovation and a client-oriented approach. This shift has not only strengthened the bank's market position but also enhanced its credibility with international rating agencies.

Importance of the Rating Upgrade

Fitch’s decision confirms NBU’s reliability and its leading role in Uzbekistan’s economic development. The upgrade also highlights the bank’s contribution to the implementation of investment and infrastructure projects that stimulate business growth, create new jobs, and strengthen the country’s financial stability.