The local currency IDRs reflect the potential support that all three banks may receive from the state should it be required. The Uzbekistan government has been regularly injecting fresh equity into the banks and it is likely to continue providing support in future, in view of its direct and indirect control of majority stakes in the banks, significant volumes of state-directed and policy lending, and the high proportion of funding provided by state agencies or state-controlled companies.

The sovereign's ability to provide assistance remains solid at present, considering its strong external and fiscal positions and the relatively small size of the banking sector, whose liabilities were equal to an estimated 30% of GDP at end-2011 and consisted mainly of deposits of domestic customers and placements by government bodies.

According to the IMF, Uzbekistan's sovereign foreign currency reserves reached US$19.8bn at end-2011, which exceeds external banking liabilities by an estimated 10x.

Asaka Bank and UPSB:

Long-term foreign currency IDR: affirmed at 'B-' with a Stable Outlook
Long-term local currency IDR: affirmed at 'B' with a Stable Outlook
Short-term foreign and local currency IDRs: affirmed at 'B'
VR: affirmed at 'b-'
Support Rating: affirmed '5'
SRF: affirmed at 'B-'

Microcreditbank

Long-term foreign currency IDR: affirmed at 'B-' with a Stable Outlook
Long-term local currency IDR: affirmed at 'B' with a Stable Outlook
Short-term foreign and local currency IDRs: affirmed at 'B'
Support Rating: affirmed '5'
SRF: affirmed at 'B-'