S&P upgrades Kapitalbank to B/B

S&P said it raised its long- and short-term counterparty credit ratings on Uzbekistan-based Kapitalbank to B/B from B-/C.

The outlook is stable.

S&P said the upgrade stems from its view of Kapitalbank's improved capital position. The bank's risk-adjusted capital ratio before diversification adjustments was 4.2% at the end of 2015, supported by robust core earnings that exceeded previous expectations.

The agency believes the bank will likely maintain its current level of capitalization, with the risk-adjusted capital ratio remaining in the 4% to 4½% range, compared with 3% to 3½% previously.

Consequently, S&P revised its assessment of the bank's capital and earnings to weak from very weak.

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