BAKU, Azerbaijan, Oct. 23
By Klavdiya Romakayeva - Trend:
A stable credit rating from Fitch Ratings will allow Uzbekhydroenergo to directly attract financing in international markets without providing government guarantees, Trend reports citing Fitch Ratings press service.
Uzbekhydroenergo JSC is the first among industrial enterprises of Uzbekistan to receive a "B+" (stable) credit rating from Fitch Ratings international rating agency.
In March of this year, a department for the transition to international financial reporting standards (IFRS) was created in Uzbekhydroenergo. The company has been audited by PricewaterhouseCoopers for financial performance following IFRS (International Financial Reporting Standards).
In October, Uzbekhydroenergo presented its first consolidated IFRS report, having received a positive opinion from the auditors of PwC (PricewaterhouseCoopers) accounting and management consulting firm.
The stable credit rating from Fitch Ratings is expected to allow the Uzbek Company to directly raise financing in international markets without providing government guarantees.
In addition, Uzbekhydroenergo plans to issue Eurobonds on the London Stock Exchange.
Uzbekhydroenergo plans to make significant capital investments within the framework of the state-approved program in the amount of over $2 billion in 2020-2030. Fitch expects the company's free cash flow to be materially negative over the rating horizon.
The agency expects Uzbekistan to be among the few countries that avoid a contraction in 2020 amid the coronavirus pandemic.
“We expect that the company's production volumes in 2020 will decrease by about 16 percent compared to the previous year, mainly due to weaker hydro resources and will gradually normalize starting from 2021 against the backdrop of normalization of hydrometeorological conditions, as well as taking into account new, commissioned facilities,” said Fitch.
Uzbekhydroenergo is responsible for the implementation of a unified technical policy in the field of electricity generation, operation of hydraulic structures, as well as centralized technological management of hydropower facilities in the Republic of Uzbekistan.
The company is also responsible for the implementation of investment projects for the construction of new and modernization of existing HPPs.
All hydropower plants in Uzbekistan are owned by the state-owned Uzbekhydroenergo JSC. At the moment, there are 39 operating hydropower plants in Uzbekistan and four under construction.
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