JSC UZEX rating raised to B+ as Fitch cites stronger operating environment

Traders Union
All News
Business & Wealth
Companies
UZEX rating raised to B+

Highlights

Fitch Ratings upgraded JSC UZEX's Long-Term Issuer Default Ratings to 'B+' from 'B' with a Stable Outlook, citing improved operating environment and credit profile.
About 76% of UZEX's bank balances remain concentrated at Trustbank through 2025, presenting a single-institution risk that constrains further rating upgrades.
UZEX's adjusted EBITDA margin is projected to rise to 90% in 2025, with trading and clearing fees representing 57% of gross revenue and interest income gaining importance.

Upgrade drivers and rating constraints

As reported by Fitch Ratings, JSC UZEX's Long-Term Foreign- and Local-Currency Issuer Default Ratings are upgraded to 'B+' from 'B', with a Stable Outlook, reflecting improved counterparty exposure and a strengthening operating environment in Uzbekistan.

The agency says the ratings are supported by UZEX's standalone credit profile, including its largely commission-based business model, absence of corporate debt, strong profitability and dominant position in Uzbekistan's commodity-trade intermediation and market infrastructure. Fitch does not factor in support from the government or shareholders.

The main constraint remains the concentration of liquid assets at Private Joint Stock Bank Trustbank, a related party and significant shareholder. Fitch says about 76% of UZEX's bank balances remain at Trustbank at the end of 2025, and a default by the bank would most likely lead to a default by UZEX unless extraordinary support is provided.

Fitch also highlights UZEX's limited counterparty risk in clearing because it acts mainly as an agent rather than a principal clearing counterparty. That structure reduces exposure to trading-counterparty defaults and market-price swings, leaving operational risk as the primary issue in clearing activities.

Profitability outlook and sector impact

UZEX remains the leading commodity exchange in Uzbekistan, with an estimated market share of more than 90% by trading turnover. Fitch says the franchise benefits from the country's market liberalisation agenda, including broader use of exchange trading for commodities and state procurement, even though the exchange is still small in absolute terms compared with larger domestic financial institutions.

Trading and clearing fees remain the main source of revenue, accounting for 57% of gross revenue in 2025, while interest income gains importance because of substantial cash balances. Fitch says UZEX's adjusted EBITDA margin rises to 90% in 2025 from 88% in 2024, supported by higher business volumes, growing interest income and a scalable operating model.

The agency adds that UZEX has no corporate debt and maintains a highly liquid balance sheet, with cash and short-term restricted cash representing about 97% of assets. While liquidity and refinancing risks remain low, Fitch says a meaningful future upgrade would require a substantial reduction in counterparty concentration through broader placement of liquidity with materially stronger banks, while any deterioration in bank exposure or financial performance could pressure the rating.

As a reminder, we recently covered AI data center financing risks as U.S. projects faced rising costs and construction delays.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.