BAKU, Azerbaijan, January 24. Moody’s has updated the Government of Uzbekistan's long-term issuer and senior unsecured ratings from B1 to Ba3, Trend reports via Moody’s outlook.
The affirmation of ratings, and change in outlook from positive to stable, takes into account Moody's view of Uzbekistan's demonstrated commitment to a comprehensive reform program in recent years that has been sustained throughout two significant, consecutive crises.
Taking into consideration the development of fiscal and monetary tools, Moody's expects that institutions and governance will demonstrate improvements.
“The stable outlook reflects risks of rising debt levels beyond Moody's current expectations and geopolitical risks to growth,” the report said.
Moody’s emphasized that risks are mitigated by the government's relatively low and affordable debt burden, and substantial assets held in the Uzbekistan Fund for Reconstruction and Development (FRD).
Furthermore, Moody's has also changed Uzbekistan's local currency country ceilings from Ba2 to Ba1, while foreign currency country ceilings from B1 to Ba3.
According to Moody’s, the two-level difference between the foreign currency ceiling and the local currency ceiling integrates Uzbekistan's relatively weak monetary and fiscal policy frameworks and a smaller capital account for expansion.
Moody's Corporation is a U.S. financial services company that acts as a holding company for Moody's Investors Service and Moody's Analytics. Moody's Investors Service provides investors with credit ratings, risk analytics, and research for equities, bonds, and government entities.