Fitch Reaffirms Turkmenistan’s B+ Rating with Positive Outlook
Fitch Ratings Affirms Turkmenistan’s Long-term Foreign Currency IDR at ‘B+’ with ‘Positive’ Outlook
Fitch Ratings, an international rating agency, has affirmed Turkmenistan’s Long-term foreign currency Issuer Default Rating (IDR) at ‘B+’ with a ‘Positive’ outlook. This announcement was made in a statement on the agency’s website on Friday.
The rating is supported by Turkmenistan’s extremely strong sovereign balance sheet with the highest sovereign net foreign asset (SNFA)/GDP and lowest sovereign debt in the ‘B’ peer group. This is backed by the country’s significant natural resources, particularly its position as the fourth largest holder of gas reserves in the world.
Fitch Ratings also noted that Turkmenistan’s external finances continue to improve, with the SNFA rising to 51.5 per cent of GDP in 2023, significantly higher than the B peer group average. Additionally, liquidity metrics have improved, and external debt service is forecasted to remain below 9 per cent of current external revenues through 2025.
Furthermore, the agency highlighted that the government of Turkmenistan has increased international engagement and made progress towards World Trade Organization (WTO) accession, demonstrating a commitment to further integration into the global economy.
In February 2023, Fitch Ratings changed the outlook on Turkmenistan’s long-term foreign currency issuer default rating to Positive from Stable and affirmed it at B+. This rating signifies that the country is in the middle tier of the positive ratings group and demonstrates a strong balance sheet with significant natural resources. The B+ rating is used by banks and organizations seeking an independent assessment of the country’s investment opportunities.
Overall, the affirmation of Turkmenistan’s Long-term foreign currency IDR at ‘B+’ with a ‘Positive’ outlook reflects the country’s strong fiscal position and its continued efforts towards economic integration and growth.
Source: Orient News
