S&P confirmed the rating of Uzbekistan at the level of “BB-” with a stable outlook

The international rating agency S&P Global Ratings confirmed the sovereign credit rating of Uzbekistan in foreign currency at the “BB-” level with a stable outlook, the agency said in a press release, the correspondent “Gazeta.uz” reports.

In the national currency, the rating was confirmed at level “B”.

“The stable forecast reflects our expectation that Uzbekistan’s relatively strong position in terms of fiscal and external reserves, as well as a low interest burden, will help the country’s economy withstand the potential negative macroeconomic consequences of the conflict between Russia and Ukraine”, – the agency explains.

The agency forecasts Uzbekistan’s real GDP growth at 5.6% for the current year and a budget deficit of 5.5% of GDP due to increased wages and social spending.

S&P also notes that Russia remains the largest source of remittances to the country, despite volumes declining from last year’s highs.

The risk of secondary sanctions being imposed by the United States and the European Union against Uzbek companies doing business with Russia, according to the agency’s assessment, remains relatively low.