TASHKENT, Uzbekistan, September 22. Fitch Ratings Agency has affirmed Uzbekistan’s Uzbekneftegaz JSC’s Long-Term Issuer Default Rating (IDR) at 'BB-' with a stable outlook, Trend reports.
The company's 'b+' Standalone Credit Profile (SCP) remains under pressure from high leverage. Fitch expects Uzbekneftegaz’s leverage to improve as its gas-to-liquids (GTL) plant is now operational and will start to significantly contribute to its earnings in 2023. The 'b+' SCP also reflects the medium-scale production, integration into downstream activities, low-cost position, and limitations of the general operating environment in Uzbekistan.
Fitch Ratings Agency emphasized the strong ties of Uzbekneftegaz JSC with the state as the main factors in assessing its rating. In addition, the upstream indicators (production and geological exploration) of Uzbekneftegaz JSC are generally noted as stable in the coming years.
Meanwhile, Uzbekneftegaz JSC is the first company in the real sector of the Republic of Uzbekistan to receive and maintain an international credit rating at the sovereign level.
The "BB-" level means that there is a possibility of developing credit risks, but the company can still fulfill its financial obligations to investors and creditors. Uzbekneftegaz JSC is an enterprise with a clear business strategy, a transparent financial position, and a strong corporate governance system.
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. Uzbekistan’s score in the company’s rating has remained unchanged for the fifth year since the country was assigned a credit rating in 2018.