Fitch Ratings has upgraded JSC National Bank for Foreign Economic Activity of the Republic of Uzbekistan's (NBU) Viability Rating (VR) to 'b+' from 'b' and affirmed the Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB-' with Stable Outlooks.

According to Fitch’s research report, the upgrade of NBU’s VR to 'b+', one notch above the operating environment score, is driven by the bank’s superior position in the local market, which is underpinned by an extended record of stable asset quality and high capitalization through the cycle. It also captures the bank’s recent shift to a more commercially focused business model, resulting in tangible improvements to its profitability.

Fitch also emphasizes that NBU is the largest bank in Uzbekistan (20% of sector assets at end-2023) with a powerful market position in corporate lending, given its policy mandate for financing strategic industries.

It is important to note that, being a state bank, NBU actively increased its loan portfolio throughout 2023 by financing both large investment projects and small and medium-sized business projects, as well as by increasing the share of loans in the retail segment by introducing new retail products. All this is positively reflected in the current Fitch rating report.

Moreover, the stability of the bank’s financial strength and reliability of operations was confirmed in the IDR rating assigned by Fitch once again at the level 'BB-' with Stable Outlooks.

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