On Sept. 12, 2023, S&P Global Ratings affirmed its 'CCC-/C' long- and short-term issuer credit ratings on Ravnaq Bank. The outlook is negative. S&P Global Ratings then withdrew its ratings at the bank's request. Despite a recent capital injection of Uzbekistani sum (UZS) 100 billion, Ravnaq Bank's creditworthiness remains weak and its viability is at risk. This is due to unresolved sizable asset quality issues, additional needs for fresh capital to meet regulatory requirements, and the resulting eventual stress on its funding and liquidity. Ravnaq needs another UZS300 billion capital injection to meet regulatory capital requirements effective Jan. 1, 2025, and almost UZS300 billion to cover nonperforming assets (NPA) because the provision coverage stands at only 2% as of Aug.
