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ACRA upgrades long-term foreign currency credit rating of Kyrgyzstan to B+

The Russian Analytical Credit Rating Agency (ACRA) has upgraded the long-term foreign currency credit rating of the Kyrgyz Republic to B+ and its long-term local currency credit rating to В+ under the international scale. The statement says.

The short-term foreign currency credit rating has been affirmed at B and the short-term local currency credit rating has been also affirmed at B.

The outlook on the long-term foreign currency credit rating is stable, as well as the local currency credit rating. The stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.

Positive rating assessment factors include:

  • Moderate public debt and low interest expenses for servicing it, which were achieved due to a high share of debt with concessional terms;
  • Significant economic growth that has resulted in both improvement of the revenue side of the budget and a general strengthening of fiscal discipline;
  • Stable support from international development institutions;
  • Relatively low shares of the public and quasi-public sectors in the economy.

Negative rating assessment factors:

  • Relatively low level of economic wealth of the population;
  • Strong dependence of the economy on factors related to the external sector, in particular, increased imports and overseas remittances;
  • Low coverage of external debt by reserves, foreign currency debt, and imports;
  • Comparatively low assessments of institutional quality and human capital factors.
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