The Kengash (Council) of people’s deputies of Tashkent city has approved the proposal of the khokimiyat (regional governor’s office) to resume the involvement of the international agency Fitch Ratings to assess the city’s credit rating. The decision of the council was approved on December 29.

The capital of Uzbekistan was first included in Fitch Ratings in June 2019. The credit rating and report the agency provided was an important source of information about the city’s financial health and creditworthiness.

In early December 2023, the agency announced the withdrawal of Tashkent’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of “BB-” with “Stable” outlook. The decision was made as Tashkent city “has chosen to stop participating in the rating process.”

As has previously reported, Fitch Ratings no longer possessed sufficient information to verify key credit factors, including fiscal and debt management policies. Therefore, the financial organization would no longer provide ratings or analysis on the capital of Uzbekistan, the agency stated.

Having approved the proposal of the Tashkent khokimiyat to resume participation in the rating process, the kengash has subsequently ordered the establishment of an agreement with Fitch Ratings. Funds for this purpose will be allocated from additional sources of the local budget.

Additionally, the kengash approved the formation of the working group. The latter will collaborate with the rating agency, supplying essential information to assess the city’s international rating position. The provision of “accurate and reliable” data is mandatory and must be done “timely and qualitatively” within five days upon the agency’s request.

In its latest December 2022 report, Fitch Ratings characterized the sustainability of the capital’s revenue as “weaker” and “fragile” due to ongoing fiscal reform in Uzbekistan. The agency highlighted the dynamic nature of the structure and distribution of tax revenues in Tashkent, subject to changes directed by the central government.