Rating-Agentur Expert RA has upgraded Uzbekistan's sovereign government credit rating (SGC) from ‘B+’ (Moderately low level) to ‘BB-’ (Sufficient level) in national currency and from ‘B+’ (Moderately low level) to ‘BB-’ (Sufficient level) in foreign currency. The rating outlook is stable which means that in the mid-term perspective there is a high probability of maintaining the rating score.
“The upgrade of Uzbekistan’s credit ratings reflects the sustained reduction of the financial dollarization as well as the successful entry to the international capital market by issuing the first emission of Eurobonds in February 2019. The solid fiscal stance, including low government debt and narrow budget deficit, robust economic growth, profitable and well-capitalized banking system remain the credit strength of the country.
At the same time, the ratings remain restrained by elevated and volatile inflation, low level of economic and institutional development, high share of FX-denominated government debt as well as underdeveloped local capital markets. In addition, high levels of credit segmentation with a widespread policy based lending on preferential rates, and high concentration of the banking system, led by state-owned banks, are the key credit risks for the country,” – clarified Vladimir Gorchakov, Associate Director of Rating-Agentur Expert RA.