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S&P upgrades Davr-Bank's credit rating following ABB takeover

11 September 2026 10:11 (UTC +04:00)

S&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&P linked the rating upgrade to Davr-Bank becoming a strategic subsidiary of the International Bank of Azerbaijan (ABB).

According to the information, 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.

According to S&P's assessment, Davr-Bank accounts for approximately 10–12% of the ABB group's total assets. The agency said the transaction is in line 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. At the same time, the level of operational integration between the two banks has not yet been determined.

S&P expects Davr-Bank to focus primarily on retail and small and medium-sized enterprise lending over the next 12 months. According to the agency's forecast, the bank's loan portfolio could grow by 20–25% in 2026 and by 30–35% in 2027–2028.

The agency also 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&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&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.

Rahim Tariverdiyev

S&P Global Ratings Davr-Bank ABB International Bank of Azerbaijan Uzbekistan credit rating banking sector acquisition financial sector CreditWatch Positive