Why is this important
A negative forecast means an increase in Fitch’s expectations for a deterioration in the bank’s capital position or operational stability. This can affect the conditions for attracting financing and investor confidence.
What happened
- The IDR rating in foreign and national currencies remained at BB-;
- The forecast was revised from “Stable” to “Negative”;
- The Agency notes potential pressure on capital and profitability indicators;
- Fitch indicates a high dependence on the support of the parent group — TBC Bank Group (Georgia);
- Support is expected to continue, but its sufficiency will depend on macroeconomic conditions;
- The bank is actively expanding in the Uzbek market, focusing on digital products and the retail segment.
What they say
The “Negative” forecast reflects the risks of TBC Bank Uzbekistan’s financial performance deteriorating amid rapid growth and external pressure. Support from the group remains a key factor in the ranking, — Fitch said.
Context
TBC Bank Uzbekistan is a subsidiary of the Georgian TBC Bank Group, operating in Uzbekistan since 2020. The bank is rapidly expanding its client base and competing with local players for a share in digital banking. The sector as a whole is threatened by macroeconomic risks, an increase in the cost of funding, and an increase in capital requirements.
