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Kyrgyzstan - country with low creditworthiness

Kyrgyzstan is a country with a low level of creditworthiness and quality of the credit climate. Rating agency RAEX assessed the sovereign rating of the government of Kyrgyzstan at B level, and the rating of the credit climate — at B-. Official website of the company says.

It is noted that the development of Kyrgyzstan continues to contain a relatively high level of public debt, a discrepancy between the target and actual values ​​of fiscal and monetary indicators, as well as a low level of economic and institutional development of the country.

Kyrgyzstan’s development continued to be constrained by relatively high and growing debt figures in absolute terms, continuously missed fiscal and monetary targets, as well as by low economic and institutional development.

The banking sector of the republic remained vulnerable; however, the recent sector’s profitability increase and ongoing reforms had a noticeable positive effect on the sector.

«On the positive side, the smooth recovery of the biggest CIS trading partners, through growing remittances and trading activity supported the output growth. However, a sustained increase in real GDP will continue to depend on the amount of gold production in the country’s biggest mines, as well as on the continuous implementation of the key infrastructure projects. Moreover, we anticipate that a sustained decline in dollarization levels, loose monetary policy and a low inflation environment will lead to a further increase in economic activity,» statement says.

The sovereign rating assigned to Kyrgyzstan says that the ability to fulfill obligations in the long term is moderately low. At the same time, the level of credit risk for liabilities remains moderately high.

The rating of the credit climate is characterized by a moderately high risk.