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Kyrgyzstan Remains a Country with Low Creditworthiness

Monday 16 July 2018

BISHKEK (24.kg) — Rating the government of Kyrgyzstan, RAEX agency calls the country as a country with a moderately low level of creditworthiness in both the national and foreign currencies.

However, the rating outlook is stable, meaning that there is a high probability of maintaining the rating score in the medium term. The agency mentioned a low short-term debt of 0.6% of GDP and 1.6% of budget revenues in 2017 among the positive factors that influenced the assessment. The economy of the republic is gradually recovering after the last external shock caused mainly by a decrease in remittances and turnover. The agency’s analysts noted:

The country’s poor institutional development had an impact on the high perception of corruption, the low efficiency of the government and the index of political stability. These factors affected the position of the republic in Doing Business 2017 ranking. At the same time, the country has a long history of cooperation with international organizations, which helps to maintain transparency of the government’s reporting at an acceptable level.

Rating B is characterized by a moderately low level of creditworthiness. The probability of meeting the liabilities in the long term is moderately low, but the level of credit risks on bonds is moderately high.

Let’s note, for half a year Kyrgyzstan was unable to change the opinion of the analysts about the level of the sovereign credit rating. In January 2018, RAEX specialists had already labelled Kyrgyzstan a country with low creditworthiness.

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