International ratings agency Fitch has given the Republic of Karakalpakstan, an autonomous region of Uzbekistan, a long-term rating of BB- with a stable outlook, reported The Times of Central Asia on Friday.
This is Fitch’s first assessment of the republic, which covers about 37% of Uzbekistan’s territory and is home to about 2.1 million people. The agency also assigned a short-term rating of B. The rating is below investment grade and applies to borrowing in both foreign and local currency. It puts Karakalpakstan on a par with Uzbekistan’s Jizzakh and Fergana regions, as well as Yerevan and Türkiye’s Konya.
Fitch noted the region’s heavy reliance on the central budget. In 2025, transfers from Tashkent made up 51% of operating revenue and tax revenue 44%. Fixed spending accounted for 76% of total expenditure. Economic output per person is about 53% of the national average. Under Uzbek law, regional authorities cannot borrow directly on financial markets.
The rating comes as Uzbekistan pushes development of the Aral Sea region. Karakalpakstan has been hit hard by the drying of the sea and has received growing state and international support for climate adaptation, infrastructure and job creation.
CentralasianLIGHT.org,
November 13, 2026