The Uzbek bank said that S&P raised its rating after analyzing financial activity of Halk Bank and targeted policy of the Government on strengthening financial stability of the country, as well as its new ratings criteria for banks.

The rating reflects adequate business position, adequate risk position, figures of funding and adequate liquid position of the Halk Bank.

S&P said that adequate business position of the Halk Bank is determined by its leading position in the banking sector of Uzbekistan on the volume of assets (1.6 trillion soums or US$900 million as of 1 October 2011).

S&P believes that the Uzbek has adequate position on risks. The fast growth of the crediting in last five years (in average 70% a year) is compensated with good diversification loan portfolio (80% of loans are less than US$10,000).

Halk Bank has high system importance. It is largest ban of Uzbekistan and has significant share in the retail deposits market. The bank has good funding and liquidity figures and status of the organization, implementing important social projects.

Analysts of S&P believe that financial figures and business profile of the bank will be stable at least next 12-24 months.