Friday, February 23, 2024

Fitch Ratings affirms Turkmenistan’s rating at B+

BAKU, Azerbaijan, February 4. Fitch Ratings, an
international rating agency, has affirmed Turkmenistan’s long-term
foreign currency Issuer Default Rating (IDR) at B+ with a positive
outlook, Trend
reports.

Turkmenistan’s robust sovereign balance sheet, characterized by
a high net foreign asset (SNFA)/GDP ratio and minimal public debt
in comparison to its ‘B’ counterparts, supports its current rating.
Additionally, Turkmenistan holds the distinction of having the
fourth-largest gas reserves globally.

Experts observe that the proportion of sovereign net foreign
assets (SNFA) to GDP in 2023 increased to 51.5%, surpassing the
average estimate for the B category. There have also been
enhancements in liquidity indicators. Projections indicate that
external debt service will persist below 9% of current external
revenues through 2025.

The agency highlights the heightened international involvement
of the Turkmen government and its advancements in the World Trade
Organization (WTO) accession process.

Fitch Ratings is an international rating agency specializing in
assessing the creditworthiness and financial stability of various
organizations, including corporations, banks, governments, and
other financial institutions.

The agency aims to provide business intelligence to facilitate
effective decision-making and decrease business risks for its
clients.

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