Fitch affirms Uzbekistan at 'BB-' with Stable Outlook
Baku, Azerbaijan, Oct. 14
By Fakhri Vakilov-Trend:
Fitch Ratings has affirmed Uzbekistan's long-term foreign- and local-currency issuer default ratings (IDR) at 'BB-', the Outlook is Stable, Trend reports citing the agency.
Short-term issuer default rating affirmed at 'B', read the message.
Fitch reports that Uzbekistan's country ceiling, local currency long term issuer default rating and senior unsecured long term ratings have been affirmed at 'BB-'.
“Uzbekistan’s local currency short term issuer default rating affirmed at “B””, read the message.
According to the rating agency, the following factors may, individually or collectively, result in positive rating action including progress towards reducing risks to and improving macroeconomic stability driven by increased credibility and consistency of Uzbekistan's policy framework; faster than anticipated improvement in structural indicators including GDP per capita and institutional factors; and significant strengthening of the sovereign balance sheet.
Fitch may downgrade Uzbekistan if there is a policy slippage or inconsistencies that lead to sustained widening of macroeconomic imbalances and increase risks for macroeconomic stability.
Moreover, the rating may be downgraded in the event of a rapid rise in government debt/GDP and a sustained fall in foreign exchange reserves or a rapid increase in external liabilities, the agency reported.
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