RAEX-Europe confirmed the sovereign government credit rating (SGC) of Uzbekistan at ‘BB-’ (Sufficient level of creditworthiness of the government) and at ‘BB-’ (Sufficient level of creditworthiness of the government) 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 confirmation of Uzbekistan's ratings at ‘BB-’ with a stable outlook is driven by the country's strong economic growth, prudent government finances with moderate levels of public debt and improved transparency and governance in fiscal and monetary policies. The ratings are also supported by the fast-growing banking sector, which maintains a favorable level of capitalization, asset quality and profit. On the negative side, the ratings continue to be constrained by elevated unemployment levels, low institutional development, high corruption and depressed level of GDP per capita, one of the lowest in the region.
Additionally, high inflation and exchange rate volatility also have a negative impact on the creditworthiness, aggravated by limited monetary policy, the effectiveness of which is undermined by heavy segmentation of bank lending, high level of financial dollarization and undeveloped local capital market.” – Clarified Vladimir Gorchakov, Associate Director of RAEX-Europe.