TASHKENT, Uzbekistan, August 26. Fitch Ratings, the international rating agency, has affirmed Uzbekistan's Long-Term Foreign Currency (LTFC) Issuer Default Rating (IDR) at 'BB-' with a stable outlook, Trend reports.
According to Fitch, Uzbekistan's rating is based on its robust external and fiscal reserves, low government debt, and impressive growth in comparison to other countries holding a 'BB' rating.
However, there are challenges to address. These include a heavy dependence on commodities, structural concerns such as a relatively low GDP per capita, a decreasing state presence in the economy, and governance levels that are improving but still weak.
The agency has indicated that positive changes in the rating could arise from macroeconomic improvements. This involves consistently applying structural adjustments to enhance GDP growth and improve macroeconomic stability.
Additionally, improvement in the country's management practices, along with a reduction in potential risks linked to international relations and politics, could positively impact Uzbekistan's ratings.
Furthermore, Fitch highlighted the importance of fiscal consolidation, which enhances medium-term public debt sustainability.
Fitch Ratings Inc. is one of the world's most reliable rating agencies. Its purpose is to deliver business intelligence to help clients make better decisions and reduce business risks.
