Rating-Agentur Expert RA upgrades Uzbekistan’s rating to ‘B+’

Tashkent, Uzbekistan (UzDaily.com) -- Rating-Agentur Expert RA upgraded from ‘B’ to ‘B+’ the rating of Uzbekistan. The rating outlook is positive.

The rating agency confirmed the sovereign government credit rating (SGC) of Uzbekistan at ‘B+’ (moderately low level of creditworthiness of the government) in national currency and upgraded it from ‘B’ (moderately low level of creditworthiness of the government) to ‘B+’ (Moderately low level of creditworthiness of the government) in foreign currency.

The rating outlook is positive which means that in the mid-term perspective there is a high probability of upgrading the rating score.

Rating-Agentur Expert RA said that the real GDP growth of the country declined down to around 5,3% in 2017; however, it remains one of the largest among the CCA peers and is expected to accelerate up to 7,9% in 2018. The future economic growth will be supported by increasing domestic investment, gradual implementation of economic reforms, as well as by favorable external demand and commodity prices.

“The upgrade of Uzbekistan’s SGC rating in foreign currency to ‘B+’ reflects the persistent implementation of economic reforms, which allowed to improve the country’s currency risk position, prudent fiscal and monetary policies, as well as very low risk of government debt distress. The positive outlook of both SGC ratings reflects our expectations about a gradual recovery of the economy after liberalization reforms are fully implemented, leading to a continued strong output growth, stabilizing inflation and fiscal budget figures, as well as the authorities’ commitment to further increase fiscal and monetary policy coordination. On the negative side, the ratings continue to be constrained by the highly dollarized financial sector, distorted by the government’s direct lending, low institutional development, high corruption and still elevated inflation levels. The future development of the ratings will largely depend on how well the government implements the development strategy 2017-21,” – Ilya Makunin, Rating Analyst of Rating-Agentur Expert RA GmbH, said.

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