S&P ups Kapitalbank view to stable

Standard & Poor's said it had revised the outlook on Kapitalbank to stable from negative, and affirmed its B- long-term and C short-term counterparty credit ratings.

The outlook revision reflects the stabilization and improvement in the bank's liquidity management following the resolution of the legal proceedings against a number of its shareholders in the second quarter of 2010, S&P said.

The ratings reflect its weak capitalization and provisioning coverage, poorly diversified franchise and lending portfolio and credit risks in the context of the risky operating environment in the Republic of Uzbekistan, the agency said.

These negative factors are partly offset by Kapitalbank's good brand recognition and geographic presence in Uzbekistan, S&P added.

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