Fitch Upgrades Turkmenistan's Long-Term Issuer Default Rating
Date
8/21/2024 2:16:25 AM
(MENAFN- Trend News Agency)
ASHGABAT, Turkmenistan, August 21. Fitch
Ratings has upgraded Turkmenistan's long-term foreign currency
Issuer Default Rating (IDR) to 'BB-' from 'B+', maintaining a
stable outlook, Trend reports.
The agency cited several factors for the rating increase. The
upgrade reflects Turkmenistan's strong sovereign balance sheet,
supported by the world's fourth-largest gas reserves.
Fitch noted further improvement in Turkmenistan's exceptionally
strong balance sheet and expressed confidence that this will be
maintained. The country's external reserves have continued to grow,
and it maintains a balanced fiscal position with very low public
debt.
However, the rating is limited by weak governance, a challenging
business environment, high dependence on commodities, and
concentrated export markets.
Despite some improvements, significant data gaps persist in
fiscal, macroeconomic, and other official statistics, especially
concerning the balance of payments.
The official exchange rate continues to show a substantial
differential, and gas production, which represents two-thirds of
total exports, fell by 2 percent in the first half of 2024.
Inflation is also expected to rise.
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