BISHKEK, Kyrgyzstan, May 20. Moody's has improved Kyrgyzstan's outlook on the country's credit ratings, Trend reports.
According to the agency, Moody's has changed the outlook from negative to stable and confirmed the long-term issuer ratings for local and foreign currency at B3.
This change reflects Moody's view that the risks to Kyrgyzstan's economy are now stable. The Kyrgyz economy and its financial health have not been as badly affected by the war in Ukraine as previously expected, despite Kyrgyzstan's close ties to Russia. It was noted that economic activity and foreign investment in important sectors like mining and transport are expected to remain strong, despite ongoing geopolitical tensions.
However, the affirmation of Kyrgyzstan's B3 ratings indicates that Moody's believes the core factors supporting the rating have not changed, the government debt is still sensitive to currency depreciation, though it has improved, and more debt is being financed locally. Support from development partners, which helps keep debt costs low, is crucial for the rating.
According to Moody's, Kyrgyzstan's country ceilings for local and foreign currency remain unchanged at B2 and B3, respectively. The gap indicates that, although the local currency ceiling is slightly higher, overall economic stability and creditworthiness are still constrained.