Baku: S and P Global Ratings international rating agency has upgraded the long-term credit rating of Uzbekistan's Davr-Bank, APA-Economics reports. The agency raised the bank's long-term issuer credit rating from 'B' to 'B+' and affirmed its short-term rating at 'B'. The outlook on the bank was set at 'stable'. S and P linked the rating upgrade to Davr-Bank becoming a strategic subsidiary of the International Bank of Azerbaijan (ABB).
According to Azeri-Press News Agency, on September 10, 2026, ABB completed the acquisition of a 51% stake in Davr-Bank. The agency believes that Davr-Bank could receive extraordinary support from ABB if necessary. Davr-Bank accounts for approximately 10-12% of the ABB group's total assets. The transaction aligns with ABB's strategy of international expansion and becoming a regional financial player.
It was reported that Davr-Bank is planned to be renamed 'ABB Davr-Bank' in the future, although the level of operational integration between the two banks has not yet been determined. S and P expects Davr-Bank to focus primarily on retail and small and medium-sized enterprise lending over the next 12 months. The agency's forecast suggests that the bank's loan portfolio could grow by 20-25% in 2026 and by 30-35% in 2027-2028.
Furthermore, the agency forecasts that the bank's net interest margin will remain at 10-10.3%, supported by high interest rates and expansion into higher-yielding segments. S and P believes that Davr-Bank will maintain adequate capital buffers in the coming period. Under the agency's base-case scenario, no additional capital injections from shareholders will be required in 2026-2028.
However, integration with ABB could create certain risks related to the reclassification of loans, the creation of additional provisions, as well as changes to strategy and dividend policy. S and P Global Ratings placed Davr-Bank's rating on 'CreditWatch Positive' on May 15, 2026, with expectations of a possible upgrade. With the latest decision, the bank has been removed from that list.