OREANDA-NEWS. October 29, 2010. Standard & Poor's Ratings Services revised its outlook on Uzbekistan-based Kapitalbank from negative to stable. At the same time, the 'B-' long-term and 'C' short-term counterparty credit ratings were affirmed.

"The outlook revision reflects the stabilization and improvement in the bank's liquidity management," said Standard & Poor's credit analyst Sergey Voronenko.

The ratings on Kapitalbank reflect its capitalization and provisioning coverage, clientele and credit portfolio diversification and credit risks as well as bank's own solvency.

As Standard & Poor's analysts note, the bank is well known in Uzbek market due to its acceptable profitability indexes and improving liquidity.

The report of the rating agency indicates that an upgrade could result only if the bank demonstrated material and sustainable improvements in its financial and business profiles, mainly in capitalization, asset quality, and lending and funding diversifications.