Ravnaq-bank

Adequate capitalization. Experienced management team. Weak competitive position, with marginal market share in the Uzbekistan. Prolonged difficulty in obtaining foreign currency license. High, although improving, balance sheet concentrations and weak business diversity. Unseasoned loan portfolio and short track record. Standard&Poor's Ratings Services' stable outlook on Uzbekistan-based Ravnaq-bank incorporates our view that the likelihood of the bank gaining a foreign currency license remains uncertain, but not impossible. Without this crucial license, any improvement in profitability, expansion of the bank's franchise, and diversification of funding profile will be challenging. We might consider raising the rating if the bank obtained a foreign currency license, which would allow the bank to boost its ties with clientele, diversify its funding profile, and expand

...Unseasoned loan portfolio and short track record. Outlook: Stable Standard & Poor's Ratings Services' stable outlook on Uzbekistan-based Ravnaq-bank incorporates our view that the likelihood of the bank gaining a foreign currency license remains uncertain, but not impossible. Without this crucial license, any improvement in profitability, expansion of the bank's franchise, and diversification of funding profile will be challenging. We might consider raising the rating if the bank obtained a foreign currency license, which would allow the bank to boost its ties with clientele, diversify its funding profile, and expand its business volumes and earnings. We also assume that any further business expansion would not further erode the bank's adequate capitalization. We might consider lowering the rating if we observe the shareholders' propensity to support the bank decline, resulting in a deterioration of the bank's business profile. An additional source of pressure on the bank's creditworthiness...

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