TASHKENT, Uzbekistan, December 5. The Standard & Poor's (S&P Global Ratings) international rating agency has confirmed Uzbekistan's sovereign credit rating in foreign currency and national currency at the level of BB-/B with a stable outlook, Trend reports.
Latest report by S&P Global Ratings shows that the stable outlook is based on the assumption that Uzbekistan's comparatively strong fiscal and external stock positions and low interest burden, will continue to contribute to maintaining the stability of its economy. The stable outlook also incorporates S&P’s expectation of a rising government and external debt burden in Uzbekistan.
The S&P notes that in a downside scenario, Uzbekistan's fiscal and external positions could weaken more than is currently expected, leading to faster growth in total external debt.
“The weakening of fiscal and external positions could result in a more significant fallout in trade, remittances, or higher domestic social risks. In addition, the ratings could come under pressure if inadequate government oversight or administrative capacity led to payment delays by government-related entities (GREs), with possible implications for government-guaranteed debt,” the agency stated.
Conversely, in an upside scenario, the S&P could raise the ratings if Uzbekistan's economic reforms result in stronger economic growth potential and broader diversification of export receipts and fiscal revenue, while fiscal and external metrics improve.