The rating agency Standard&Poor’s is assigning its “B-” long-term and “C” short-term counterparty credit ratings to Uzbekistan-based Turon Bank.

In November 2010, OJSC Turon Bank celebrated 20 years of its operation. By that time, it had the authorized capital of 23.8 billion Soum.

On Aug. 31, 2012, Standard & Poor’s Ratings Services assigned its B- long-term and C short-term counterparty credit ratings to Uzbekistan-based Turon Bank. The outlook is stable.

S&P’s ratings on Turon Bank reflect the b+ anchor for a commercial bank operating only in Uzbekistan, as well as their assessment of the bank’s moderate business position, weak capital and earnings, moderate risk position, average funding, and adequate liquidity. The ratings on the bank reflect its stand-alone creditworthiness and do not include any uplift for extraordinary support.

The stable outlook reflects S&P’s expectation that the bank will improve its capital position via external capital injections to comply with regulatory requirements with a margin of at least 100 basis points.

Rationale

The ratings on Turon Bank reflect its b+ anchor, as well as S&P’s view of the bank’s moderate business position, weak capital and earnings, moderate risk position, average funding, and adequate liquidity, as their criteria define these terms. The stand-alone credit profile is b-.