In Moody’s opinion, the Uzbek government’s strengthened ability to support the country’s banking system and systemically important banks, in terms of both local currency and foreign currency deposits, is evidenced by its continually improving debt ratios and good fiscal performance.

The lower debt burden is coupled with positive economic growth that has withstood the shocks posed by the global financial crisis, despite the vulnerabilities associated with being a small, commodity-based, open economy. As a result of the authorities’ prudent policies that enabled them to accumulate considerable resources, domestic demand has been stimulated through increased government consumption, helping to boost growth and withstand the impact of the crisis.

Moody’s confirmed the long-term local currency deposit ratings of three Uzbek banks as follows:

- National Bank of Uzbekistan - long-term local currency deposit rating of Ba3 with Stable outlook

- Ipoteka-Bank - long-term local currency deposit rating of B1 with Stable outlook

- Alokabank - long-term local currency deposit rating of B1 with Stable outlook

This rating action concludes the review for possible downgrade that Moody’s initiated on these ratings on 21 May 2009. The review was originally prompted by the rating agency’s intention to assess the effect of the global financial crisis on the capacity of the Republic of Uzbekistan and its central bank to support the local banks, and the need to estimate how this capacity converges with, and is constrained by, the government’s own debt capacity. In order to conclude the review, Moody’s has reassessed the government’s ability to provide support to the Uzbek banking system and to the three reviewed banks.

As a result of its reassessment of the Uzbek government’s ability to support local banks, Moody’s has also taken the following additional actions, some of which affect the foreign currency ratings of the banks listed above, while others affect the ratings of other Uzbek banks:

- Asaka Bank - long-term local currency deposit rating was upgraded to Ba3 from B1, long-term foreign currency deposit rating was upgraded to B2 from B3. The E+ BFSR and Not Prime short-term deposit ratings remain unchanged; stable outlook is maintained on all of the ratings.

- Qishloq Qurilish Bank - long-term local currency deposit rating was upgraded to B1 from B2, long-term foreign currency deposit rating was upgraded to B2 from B3. The E+ BFSR and Not Prime short-term deposit ratings remain unchanged; stable outlook is maintained on all of the ratings.

- National Bank of Uzbekistan - long-term foreign currency deposit rating was upgraded to B2 from B3. The E+ BFSR and Not Prime short-term deposit ratings remain unchanged; stable outlook is maintained on all of the ratings.

- Ipoteka-Bank - long-term foreign currency deposit rating was upgraded to B2 from B3. The E+ BFSR and Not Prime short-term deposit ratings remain unchanged; stable outlook is maintained on all of the ratings.

- Alokabank - long-term foreign currency deposit rating was upgraded to B2 from B3. The E+ BFSR and Not Prime short-term deposit ratings remain unchanged; stable outlook is maintained on all of the ratings.

- Credit-Standard Bank - long-term foreign currency deposit rating was upgraded to B2 from B3. The E+ BFSR and B2/Not Prime long-term and short-term local currency deposit ratings remain unchanged; stable outlook is maintained on all of the ratings.

Moody’s previous rating action on National Bank of Uzbekistan, Ipoteka Bank and Alokabank was on 21 May 2009 when Moody’s placed their local currency deposit ratings on review for possible downgrade.

Moody’s previous rating action on Asaka Bank was on 18 June 2009 when Moody’s assigned first-time ratings of B1/NP/E+ to the bank.

Moody’s previous rating action on Credit-Standard Bank was on 29 October 2008 when Moody’s assigned first-time ratings of B2/NP/E+ to the bank.

Moody’s previous rating action on Qishloq Qurilish Bank was on 29 July 2009 when Moody’s upgraded long-term local currency deposit rating to B2 with Stable outlook.

The principal methodologies used in rating these banks are Moody’s "Bank Financial Strength Ratings: Global Methodology", published in February 2007, and "Incorporation of Joint-Default Analysis into Moody’s Bank Ratings: A Refined Methodology", published in March 2007, which are available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating these banks can also be found in the Rating Methodologies sub-directory on Moody’s website.

Headquartered in Tashkent, Uzbekistan, Alokabank reported total IFRS assets of UZS197 billion (USD141 million) and net IFRS income of UZS4.2 billion (USD3 million) as at 31 December 2008.

Headquartered in Tashkent, Uzbekistan, Asaka Bank reported total IFRS assets of USD1.067 billion and net income for that year was USD15.7 million as at 31 December 2008.

Headquartered in Tashkent, Uzbekistan, Credit-Standard Bank reported total IFRS assets of UZS235 billion (US$169 million) and net income of UZS6.6 billion (US$4.7 million) as at 31 December 2008.

Headquartered in Tashkent, Uzbekistan, Ipoteka Bank reported total IFRS assets of UZS610 billion (US$438 million) and net income of UZS13.6 billion (US$9.8 million) as at 31 December 2008.

Headquartered in Tashkent, Uzbekistan, National Bank of Uzbekistan reported total IFRS assets of US$3 billion (2007: US$2.5 billion) and net income of US$23 million as at 31 December 2008.

Headquartered in Tashkent, Uzbekistan, Qishloq Qurilish Bank reported total IFRS assets of UZS171 billion (US$123 million) and net income of UZS5 billion (US$3.7 million) as at 31 December 2008.