International credit rating agency Fitch Ratings has affirmed Turkmenistan's long-term foreign-currency issuer default rating (IDR) at 'B+' with a 'Positive' outlook, Orient.tm reports.
"The rating is supported by Turkmenistan's extremely strong sovereign balance sheet with the highest sovereign net foreign asset (SNFA)/GDP and the lowest government debt in the 'B' peer group, backed by the world's fourth-largest gas reserves," the agency's statement on February 2 reads.
According to experts, external finances continue to improve, with the SNFA share growing to 51.5% of GDP in 2023 compared to the 'B' category's average of -22.5%. "Liquidity metrics have also improved, and we forecast debt service to stay below 9% of current external receipts through 2025, significantly below the 2021 level (14.8%) and the current median for the peer group at 18.8%."
The agency also notes that the Turkmenistan government has increased international engagement and made progress towards joining the WTO.
In February 2023, Fitch Ratings changed Turkmenistan's long-term foreign-currency IDR outlook from 'Stable' to 'Positive' while maintaining it at 'B+'.
A 'B+' rating signifies that the country is at a moderate level within the positive ratings group, indicating a strong balance with significant natural resources. Public ratings are utilized by banks and organizations seeking an independent assessment of investment opportunities in the country.
Earlier, it was reported that the State Bank for Foreign Economic Affairs of Turkmenistan would expand its collaboration with the international agency Fitch Ratings.
CentralasianLIGHT.org
February 5, 2024