It has assigned CR Assessments of Ba3(cr) to Hamkorbank; B1(cr) to National Bank of Uzbekistan, Asaka Bank, Alokabank Joint-Stock Commercial Bank, Ipoteka Bank, Ipak Yuli Bank, Savdogar Bank, and Uzbek-Turkish Bank; B2(cr) to Asia Alliance Bank and InFinBank; and B3(cr) to Agrobank. Concurrently, Not Prime(cr) short-term CR Assessments have been assigned to all of the banks.

CR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails and are distinct from debt and deposit ratings in that they (1) consider only the risk of default rather than expected loss and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessment is an opinion of the counterparty risk related to a bank’s covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.

In most cases, the starting point for the CR Assessment -- which is an assessment of the ability to avoid defaulting on its operating obligations -- is one notch above the bank’s adjusted baseline credit assessment (BCA), which represents the rating agency’s view of the probability of a bank failing on its obligations without considering government support. Moody’s then adds the same uplift due to the likelihood of government support as applied to deposit ratings. However, in the case of the higher-rated government-owned Uzbek banks the CR Assessments do not benefit from the additional one notch of government support that the rating agency imputes in their deposit ratings.

As a result, the B1(cr) CR Assessments of National Bank of Uzbekistan, Asaka Bank and Alokabank are aligned with these banks’ deposit ratings. At the same time, Ba3(cr) CR Assesment of Hamkorbank, B1(cr) CR Assessments of Ipoteka Bank, Ipak Yuli Bank, Savdogar Bank, and Uzbek-Turkish Bank, B2(cr) CR Assessments of Asia Alliance Bank and InFinBank, and B3(cr) CR Assessment of Agrobank are one notch higher than these banks’ deposit ratings.