TASHKENT, June 25 (Xinhua) -- International rating agency Moody's Ratings has upgraded Uzbekistan's long-term issuer and senior unsecured debt ratings to Ba2 from Ba3, shifting the outlook from positive to stable.
In a report released Thursday, the agency attributed the upgrade to the steady strengthening of Uzbekistan's institutional and economic frameworks, improved fiscal indicators, and the rising efficacy of its policy implementation.
Moody's highlighted Uzbekistan's diversified economic growth, which averaged approximately 6.9 percent over the past three years. The country's gross domestic product (GDP) grew by 7.7 percent in 2025 and accelerated to 8.7 percent in the first quarter of 2026.
The rating action also reflects the country's broader structural reforms, including public administration overhauls, market liberalization, the establishment of independent sector regulators, and progress toward World Trade Organization accession.
As a key milestone in financial market integration, Moody's cited the dual listing of shares of the National Investment Fund of Uzbekistan in May 2026, which successfully mobilized around 691 million U.S. dollars amid strong international investor demand.
Moody's also raised Uzbekistan's local currency country ceiling to Baa3 from Ba1, and its foreign currency country ceiling to Ba2 from Ba3.
While noting the positive trajectory, the rating agency pointed to lingering structural risks, including potential state liabilities tied to state-owned enterprises and public-private partnerships, which are estimated at about 25 percent of GDP. State-owned banks also continue to hold a dominant market share despite a reduction in preferential lending.
Long-term challenges include environmental vulnerabilities such as water scarcity and climate change, alongside the ongoing need to institutionalize governance reforms.
Moody's indicated that further upward rating momentum would depend on the sustained implementation of economic reforms, successful mitigation of risks in the state-owned banks and banking sectors, and the continued expansion of the private sector. ■
