Fitch upgraded Uzbekistan’s sovereign rating from BB− to BB with a Stable Outlook in June 2025, recognizing progress in fiscal discipline, state-enterprise reform and privatization. The rating remained below investment grade and continued to require disciplined execution of the reform agenda.
Fitch upgraded Uzbekistan’s long-term sovereign rating from BB− to BB with a Stable Outlook on 26 June 2025. The decision marked a one-notch improvement while leaving the sovereign below investment grade, and reflected a stronger assessment of reform momentum, fiscal performance and medium-term economic resilience.
The agency highlighted progress in state-owned-enterprise reform, including the transfer of stakes in 18 enterprises to the National Investment Fund, and steps to improve corporate governance and institutional independence. The upgrade also recognized tighter fiscal discipline and continued privatization, areas that directly affect contingent liabilities and the sovereign balance sheet.
A higher sovereign rating can reduce the risk premium used as a reference for government, bank and corporate borrowing, but the transmission is neither automatic nor uniform. Market rates, maturity, currency, documentation, security package and issuer-specific leverage still determine the final cost and investor demand for each transaction.
Fitch retained the BB rating and revised the Outlook to Positive in June 2026, indicating that the direction of travel remained favorable while execution risks persisted. Sustained fiscal control, credible management of state-enterprise liabilities, deeper governance reforms and resilience to external shocks remain central to any further re-rating.
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