Moody’s Upgrades Uzbekistan’s Credit Rating Outlook

Moody’s has affirmed Uzbekistan’s credit rating at Ba3 (BB-), while raising the outlook from stable to positive, according to the Ministry of Economy and Finance of Uzbekistan.

The outlook revision reflects improvements in economic policy effectiveness, driven by structural reforms implemented across the country.

Moody’s highlighted Uzbekistan’s energy sector reforms as a sign of the government’s willingness and capacity to undertake complex transformations in the future.

The agency also noted progress in expanding the number of independent directors on the boards of state-owned enterprises and banks. The recent adoption of the law on conflict of interest and other regulatory initiatives received positive feedback.

Due to reduced energy subsidies and more targeted social spending, Uzbekistan’s budget deficit fell to 3.3% of GDP in 2024, compared to 4.9% in 2023.

Forecasts suggest the deficit will stay below 3% of GDP between 2025 and 2027, with public debt capped at 40%.

Earlier, Kursiv Uzbekistan reported that S&P also upgraded Uzbekistan’s outlook to Positive.